When I think of financial planning, what is it that we are really trying to do?
The simple answer is “personal empowerment”.
Empowerment not only with an individual’s personal finances but more broadly their decision making abilities in life.
A recent example of this was a client who was very keen on purchasing a property.
She was inspecting a dream house that was clearly out of her price range. As she exited the property, the real estate agent had said to her “You should show up for the auction next weekend. Anything can happen at auction.”
In a few simple words by the real estate agent had restored hope.
“Maybe I can afford it. Maybe I can have this dream home!” thought the client excitedly.
She contacted us and asked that we attend the auction with her next weekend.
We attended the action and the property was sold for a great deal higher than what her budget allowed for. She was left bitterly disappointed. It was clear the instructions the real estate agent had from the vendor were much higher than originally quoted.
So why would the agent clearly chase someone who wasn’t a suitable buyer?
Maybe the agent thought she might stretch. When she was standing there in her dream home, caught up on the emotion of the situation. Surrounded by a beautiful house that could potentially one day be her “home”.
It happens every day in life. Sales people getting purchasers to make a decision based on emotion rather than fact.
When working with people around financial empowerment issues, we encourage you to step back and be aware of the situation. Ask yourself, right here, right now:
Being aware of this, will change your outlook and ultimately your final decision. Financial empowerment is about saying to ourselves:
“The number & outcome is what it is”
Let’s focus where this decision will put me in after the transaction.
Only then can we rationally ask ourselves “Is this still the right decision to make?”
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