Investing is better done with expert tips

Here are signs you might be missing out on big money by playing the wealth game solo:

1. You control the tiny details, but lose big opportunities. You worry about paying a few extra dollars on petrol and groceries. You have an elaborate budgeting spreadsheet. You’re savvy with rewards and points systems.

Meanwhile, you don’t know how to invest. You don’t know anything about your retirement fund. You don’t know the first thing about tax deductions.

Pro-tip: If you stop micromanaging every tiny detail, it might free up some time to start exploring bigger, more significant financial opportunities.

2. You think everyone is out to scam you. New finance app? It’s a scam. Accountants? Can’t trust them. Banks? They just want to milk you for your money. Everyone is out to get you, profit off you, scam you. You can’t trust anyone.

So, you make small, fear-based moves. Sometimes you don’t make any moves because you’re so scared of every direction, you end up moving in no direction (ironically, this can set you up to make worse decisions, because you’re so scared to listen to anyone, that you end up making poorly informed decisions).

Pro-tip: Is this a reflection on their lack of trustworthiness? Or is it a reflection of your lack of confidence in your own ability to discern who is trustworthy?

3. You think you’re “saving money” by doing it all yourself. $200 for an accountant? Nah, I’ll just do my own taxes, even though I won’t have any idea how to maximise tax deductions that could save me hundreds.

Thirty dollars for a book on investing? Nah, I’ll just spend five months listening to free podcasts that will ramble for hours leaving me more confused and overwhelmed. 0.05 per cent fee on an investment service? Nah, I can do it myself – I won’t because I’m too scared to invest, or I don’t have the time to do the research, so I’ll procrastinate for two years… but at least I’ll save money.

Pro-tip: This is a short-term mindset. You will save more money AND time long-term by leveraging the expertise of people who know more than you.

If it sounds like I’m saying you should blindly trust others, I’m not. It’s important to have enough of your own financial competence and capability that you understand how to make good financial decisions. But let’s face it – there’s only so much you can learn, know, do or master in a lifetime.

What I am saying is that along with building your own capability and confidence, it’s also important to learn how to build a good team around you and leverage the expertise of others. It’s important to have the self-awareness of what your strengths are, and where it makes sense to lean on someone else’s strengths to get you further.

Because letting go of control and learning to trust people is hard. But you know what’s harder?

The regret of never reaching your dreams and potential because you were too scared (or perhaps too proud) to let other people help you get there.

Paridhi Jain is the founder of SkilledSmart, which helps adults learn to manage, save and invest their money through financial education courses and classes.

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.

link