Benefits of Wise Financial Choices

Devastating Results of Poor Financial Choices

It takes time and effort to decide what our biggest priorities are. It takes even more time and effort to be sure that our financial decisions are always in harmony with these priorities. However, the reward is well worth the price.

What is the alternative? Let me share with you some of the consequences I have seen people suffer as a result of poor financial decisions that were inconsistent with what they really wanted most:

• Constant stress and worry
• Nervousness
• Sleepless nights
• Obsessive preoccupation with money, with difficulty focusing on other things
• Fear of losing money or other possessions
• Taking too much risk with investments
• Missing out on investment growth opportunities
• Obsession over daily market fluctuations
• Poor physical health
• Poor mental, emotional, and spiritual health
• Strained family relationships
• Divorce
• Lack of freedom to change jobs or start a new business
• Lack of freedom to move to a new location
• Having to move in with extended family members
• Delayed retirement
• Inability to retire ever
• Inability to help others in need
• Poor performance at work
• Job loss
• Inability to appreciate the simple beauties of life
• Inability to obtain a quality education
• Inability to help provide a quality education for children or grandchildren
• Lack of passion, ambition, and excitement for life
• Lack of trust in others
• Lack of trust by others
• Indecisiveness stemming from fear of making another mistake
• Procrastination
• Overeating
• Oversleeping
• Shoddy personal appearance
• Loss of creativity
• Loss of self esteem
• Hopelessness
• Alcohol, tobacco, and drug abuse
• Suicide

What is the cost of making casual financial decisions which are inconsistent with our biggest goals in life? Do you really believe that one poor financial decision could directly cause a number of these undesirable results?

Have you experienced any of these conditions yourself? If so, can you trace any of them back to a particular financial decision? If you think about it, one serious financial mistake in an extreme case could actually cause all of the maladies listed above.

Benefits of Wise Financial Choices

Perhaps the greatest value anyone could receive from working with a financial advisor is what I call “Big Mistake Insurance.” This means that when an advisor helps to ensure that all financial decisions are consistent with your most important priorities, you can avoid many, if not all, of the symptoms listed above. Contrast the list above with the following results I have observed in many people who have clearly defined what they want most and have generally made wise financial decisions consistent with those priorities:

• Security
• Confidence
• Peace of mind
• Ability to sleep well at night
• Ability to wake up early, excited for the start of each new day
• Feeling of control over life and material things
• Reduced stress
• Greater ability to focus on other things besides money
• General detachment from material possessions
• Emotional detachment from short-term market performance
• Healthy, consistent returns on investments
• Great physical health
• Great mental, emotional, and spiritual health
• Loving family relationships
• Strong marriage
• Freedom to change jobs or start a new business
• Freedom to move to a new location
• Secure retirement
• Ability to help others in need
• Excellent performance at work
• Ability to appreciate the simple beauties of life
• Ability to obtain a quality education
• Ability to help provide a quality education for children or grandchildren
• Passion, ambition, and excitement for life
• Ability to easily trust others
• Trusted easily by others
• Ability to make quick and firm decisions
• Healthy, vibrant appearance
• Increased creativity
• High self esteem
• Ability to travel, shop, golf, boat, ski, and generally live a full, fun life!

How does that sound? Is it worth exercising a little self-discipline and sacrificing some of what you want now to obtain what you want most in life?

The choice is yours. Which road will you take?

Adam Dawson, CFP® is a Principal at Capstone Capital and the author of Timeless Principles of Financial Security.