An interesting analogy came to me the other day – DIY around the house and financial planning.
In today’s market place the tools and guidance available to us are absolutely superb. There is no reason why a professional outcome cannot be achieved time after time.
But in both arenas there are a range of tasks that can be undertaken, and some much more complex than others.
Changing a lightbulb (no-one changes a plug anymore, do they?) can be expertly completed by pretty much anyone.
Knocking through from your kitchen to dining room is a little more involved.
For one you need no expert assistance, for the other you’d probably want to consider it.
The chances of changing a lightbulb going wrong are slim and the consequences minimal – you’re unlikely to suffer much more than a dark room.
However, knocking through could have untold complications and terrible consequences – your house could fall in on you. Engaging with a professional makes sense.
As so it is with financial planning matters.
You do not need help selecting a credit card or savings account – we can’t improve your decision and, even if it’s a bit off, the consequences are likely minimal.
However, when it comes to putting together a strategy for you and your family that ultimately provides 30+ years of a growing income, there is a lot that can go wrong. And the consequences could be devastating – loss of home, lifestyle halved, unable to help the children, retirement poverty, etc. Engaging with a professional makes sense.
Put the right tools in the wrong hands and soon enough there will be blood and fingers on the floor.
Put the right tools in the right hand and beautiful things will be created.