As a specialist, you know more and more about less and less until eventually you know everything about nothing. As a generalist, you know less and less about more and more until eventually you know nothing about everything. The SECRET is in balancing the two.
Did you know that if you write to the factory in Germany, they will send you a complete kit and you can build your own Porsche. DIY project, anyone?
THE DIY TRAP
With technology at our fingertips, it’s completely logical to think we can/should do anything and everything ourselves.
Often when we first meet people, they’ve been trying for awhile to manage their finances on their own. It’s always the same story: they opened up an online account, funded it with somecash, listened to tips from friends, blogs, CNBC and in the end they wind up with a bunch of investments that don’t make sense, haven’t performed well and aren’t doing anything to help them achieve their short or long-term goals. Let’s call this the DIY “I can do anything” trap.
We get it, your intensions were good. That should count for something.
HOW I BUILT A PORSCHE
I have never studied auto-making but I’ve driven a car for over 15 years, so I have some “experience”. I figure I’d talk to a few mechanics and read a few forums online and hope for the best.
So I ordered the kit. It’s over 30,000 parts. I begin trying to build the car and realize along the way that I have absolutely no freaking clue what I’m doing. How do I align the weight ratio balance perfectly for that incredible Porsche handling? How do I tune the transmission by ear? I decide to call in reinforcements from my local mechanic. In the end, I wind up paying a lot more than it would have cost to just buy the car made by the professionals. On top of that, I actually damaged some of the components and it cost me more money to have to re-buy them. And worst of all, despite our combined efforts, the car doesn’t perform nearly as well as any of the ones I test-drove at the dealership.
FOR OPTIMAL PERFORMANCE…
The investing world has well over 30,000 investments to choose from. How do you put them together? Which ones make sense for your situation? What if your situation changes – you have a baby, you buy a house, you get married (presumably not in that order unless you’re Kim Kardashian)?
YOU’RE NOT OFF THE HOOK UNLESS YOU WANT TO BE
The educated client is the best kind. We can help you with the knowledge but ultimately the decisions are yours. Our Financial Cliffnotes emails and LIVE talks are a great way to stay informed. Don’t get stuck in a costly mess because you tried to DIY and got lost in the industry jargon. You don’t have that kind of time to waste and unless your name is Dan Bilzerian, you don’t have that kind of money to waste either!
SO WHAT’S THE POINT?
The point is that if you have the time and want to DIY, then get your butt to our seminars, schedule a consultation with us and read everything you can get your hands on, not CNBC and the other news outlets out there that just hype the markets. There are some great personal finance books out there. Try this list. Our personal favorites being The Millionaire Next Door and The Behavior Gap.