Personal Financial Tip 9

We live in a marvelous time. Never in the history of mankind has information been so readily available. We don’t even have to leave our desks. We can access information on any topic through a few mouse clicks. This empowers us to make more informed decisions. However, having easy access to so much information does have a downside. We can put ourselves in a position of information overload. This happens when the volume of information collected causes confusion instead of clarity. This overload inhibits our ability to prioritize the information making it difficult to focus on what’s truly important.

Even more dangerous is coming to the conclusion that we are now experts. A little knowledge is a dangerous thing. An example of this problem is what’s happening in doctors’ offices. Patients are meeting with their doctors with preconceived ideas as to the course of action that should be taken. If the doctor doesn’t conform to these preconceived ideas then the patient loses confidence in the doctor and may avoid coming back. The doctor may simply give in to the patient’s wishes concluding, “There’s no harm done”. This is a major reason why doctors prescribe unnecessary medication so often.

In the past we’re hired experts because we knew we couldn’t do the job as well as they could or we couldn’t do the job at all. In selling a home we would hire a real estate broker to handle the transaction. We would use a mortgage broker to arrange for the financing when purchasing a home. We didn’t know how to do it, so we hired someone else to do it for us.

Today we hire professionals for the experience they bring to the transaction more than their knowledge. Theoretically we can learn enough to get by through our own research but that’s not enough to get the job done. We can absorb all the knowledge that’s needed to fly a plane but without hands on experience we can’t be considered pilots.

The same holds true when working with a broker. You can have done all the research but the lack of experience will put you at a disadvantage in the transaction. The questions you need to answer are these. Is the money I am savings by not hiring a professional worth the time that’s spent researching? Is my lack of experience going to make the transaction more expensive for me? Am I going to make an expensive mistake?

A professional is hired because he brings a level of expertise that can only be developed over time. He will explain what is happening, what he needs to do, what you need to do as well as the consequences of all actions taken. Research that’s done on your part allows you to utilize the professional’s service efficiently. You already know the basics so all discussions between the two of you are on a higher level giving you more value for the money.

In choosing a professional to work with you should be looking for a person with years of experience, one who takes the time to explain what needs to be done, is willing to answer your questions and most importantly one you are comfortable doing business with. Each one of us has our own unique personality and every professional has his own personality. If these personalities clash, if the two of you aren’t on the same wavelength, then this is not the person you should be conducting business with.

Once you have chosen a professional to work with you need to trust him. He has been picked by you to become a member of your team. If you are going to second-guess his advice or worse question everything he does you are making him ineffective. You will be paying for a service that you aren’t using, the worse possible combination.

Utilize the Internet and any other reference material you have available. Take the time to become an empowered consumer. With that knowledge choose the professionals to work with, surrounding yourself with the most competent team you can. Now, allow them to do their jobs. Working with them, respecting the skills they are bringing to the transaction and having faith in the decision you made when you hired them will yield the best results.