Know Thyself and to Thyself Be True!
Posted June 1st, 2012
Most of us have, or have had at some time or another that friend. You know the one. The one that can wear those wacky clothes that you wouldn’t be seen dead in! They have that really (forgive me!) kooky sense of style and often wear pretty outrageous things. However, it works right? Moreover, you probably actually find yourself wondering “Why can’t I get away with wearing these things and they can?” The answer is, they aren’t you and you aren’t them.
You may have tried the low cut blouse or the short shorts, or the flares (yes some people still wear them), or the skinny jeans or whatever…….only to find they just don’t seem to suit you as well as they do your friend. However, have you considered that your friend may hold a similar view of your attire?
They may consider that smart shirt, those understated stylish trousers, or the long flowing summer dress just wouldn’t look as elegant on them as it does on you. Perhaps they may find themselves wishing they could dress a bit more conservatively, and pull it off as handsomely as you at the same time.
Something that works for one often doesn’t work for another. Your financial investments and long term planning may not be the only right options for you…….but you may be the only person they will work for. If you marry up what you honestly want for your future alongside the tolerance for risk that you have, you may find that the portfolio you have fits you like a well tailored suit. On the other hand, you may find that your portfolio doesn’t adapt well to the fluctuating financial weather and makes as much sense as dressing like an Eskimo whilst holidaying in the Dominican Republic. In that insane scenario you would adapt. You would buy different clothes (or at the very least discard a few layers). Can your portfolio do the same?
On inspection, are your future financial plans tied up in someone else’s predictions and advice? Just because the weather man forecasts warm weather doesn’t mean it’ll stay warm forever and you would know you need to plan to adapt. That’s all. Not planning for every disaster, every upsurge or down turn. Just plan well enough to be able to adapt or even change your plans. If you have a clear goal for your life, change of plans and adapting are often just detours to achieving the same ends. Just because there are unexpected road works between here and your destination, doesn’t mean you give up on reaching your destination – you just adapt by changing your route.
The key word in personal finance is the word personal. My priority is always getting to know you before we get to talking about your finances. Your money works for you, not the other way round. The advice I gave someone yesterday may not be the advice I’d give to you today as your goals and tolerance are different. You’re a different person and I will help you achieve your objectives by understanding you and what you want.
It won’t be done with outlandish stock market movement predictions. It will be done with careful consideration about your dreams and goals as an individual. That way, you will have a portfolio that fits you like the proverbial mitten and feels as comfy as those old slippers (that your wacky friend wouldn’t be seen dead in and your wife or husband has tried to throw out several times but they keep mysteriously reappearing under the bed).
Follow your head, not the herd.