Financial DIY: The common mistakes of going alone

havenifa

havenifa


Posted on: 4th December 2019

If you have decided it’s time to sit down and plan out your financial future, you may be tempted to do this by yourself. However, financial DIY is a lengthy process that requires deep research, plenty of focus and a sensible point of view. You may tell have already told yourself that you are more than willing to put in the effort to make this happen, but it is easier said than done. Before you decide to go it alone, read these common mistakes that people underestimate when they don’t seek the help f an IFA.

Research

Though scouring the market for the best products and providers is important, it might not be as simple a task as you’d expect. There is so much information out there that you may read contradicting points from different sources. With an IFA, you can relax knowing they will take care of this process and present you with your best options to help you make a smart decision.

Getting the planning done

If you happen to live a busy lifestyle and find yourself with few moments to stop, putting in the work to create a financial plan may not be doable. Even with the knowledge and skill, this plan requires time and focus. As for those who do have the time, many will still procrastinate about planning and taking action to implement these plans.

Risks

Finding the perfect balance of return and risk isn’t as simple as taking a leap of faith. Having a financial adviser by your side means you can make the best investment decisions that will achieve reasonable rates of return without high risks. What’s more, they can find the appropriate insurance products to cover the biggest hazards.

Putting emotions first

Whatever the numbers may tell you, the decision you make will almost always come with quite a large emotional component. This could mean that whatever you do decide, could be blinded by personal feelings, which could bring regrets later on. An IFA is there to discuss the reality of your choices and help you make a rational decision.

Focusing on the “now”

Too often are people pushing back their savings and retirement plans to focus on current situations. However, if you overvalue the importance of immediate income and undervalue or ignore your savings, you will be setting yourself up for a setback in the future.

Self budgeting

Budgeting is easier said than done. You can make promises to yourself to not overspend but find yourself doing so anyway. Think of your IFA as a personal trainer. Without them, can you definitely put in the work you promised you would?

There is also an associated tendency for those who spend too much to over-borrow, particularly on credit cards and other elements of consumer debt. Having that hand to hold will make a huge difference to how you look at your finances and help you keep a close eye on your spending.

How can you avoid these mistakes?

The DIY method may look appealing, particularly given the savings you’d assume would come with it. However, without the help of an IFA, you could find yourself paying more due to poor planning and taking the wrong risks. This is why Haven IFA is here to meet with you and discuss the available options that will allow you to save comfortably and enjoy your retirement to its fullest. To find out more about our financial services, get in touch.