financial decision making

Acting Against Irrational Financial Decisions



Posted on: 26th February 2021

As the media likes to whip people into a frenzy with regards to financial marketplace instability and the fate of the economy for a quick buzz of sensationalism, it can be a worrying time to make a move into investment avenues, especially if you don’t seek independent advice before financial decision making begins.

The current mentality of concentrating on the short term, pulling out money from investments too early for fear of a crash that may or may not be on the horizon, plays an even bigger risk in the long term. It comes to an understanding that you are left in the woods without a torch or compass if you don’t seek independent advice from independent financial advisors Cheshire in order to avoid becoming lost in the confusion.

Joining the Herd

The term ‘herd mentality’ is when investors like yourself base their actions on those made by others. It’s basically jumping on the bandwagon based on someone else’s experiences in the area without fully exploring why that person may not have been successful.

When you engage with a financial advisor you may be walking in with other people’s experience and opinion hanging over you, which can make for negative thought space straight off the bat. This will not provide you with any positive viewpoints unless you clear in your head that the instances you have heard of from others may not directly affect yourself, or that these parties may never have gone as far as you have to enlist the advice of a professional.

Provide the Questions, Explore the Answers

When coming in to discuss with a financial advisor, it is imperative that you prepare your questions ahead so you can be sure that you are getting everything spelt out for you.

You are not meant to have all of the answers which is why the professional is sitting with you, and being sure that you understand and are in mutual communication on each subject you bring up so that every answer is clear and concise. Independent financial advisors in Manchester are there to provide a clear path for your financial wellbeing, and only by asking the questions are you open to the right answers. If the answers are confusing or contradictory to what your understanding is, then simply ask more deeply about it so it is clear.

Don’t leave a meeting more confused than when you went in. That only leads to further confusion down the line.

The Overconfident Mistake

We all can be easily led to believe in someone’s convictions over what they believe.

This can lead to you entering talks with a financial advisor believing you know better than they do base on other information, which makes for dangerous ground when it comes to your investments and financial futures. Disregarding independent advice and not looking into avenues that are recommended can leave you in financial trouble should what you have been told by friends prove to have been a wrong turn. Plus, you’ll have no way of getting help or claiming on bad advice given by a professional; meaning you will not be covered from going blindly into the fires and not heeding the warnings.

A financial advisor will help you formulate a long term plan and keep an eye on the market in order to avoid any problems that could affect your financial future.

No matter what you are being told it is always beneficial to get a professional opinion and guidance. Talk with the team at Haven IFA today to get the best advice from the best independent financial advisors UK and help you with financial decision making.