Why You Must Question the ‘Expert’ Advice by Kim Kiyosaki

Why You Must Question the ‘Expert’ Advice

Blindly following the masses won’t get you any closer to your financial dreams

Have you ever noticed how most mainstream financial “experts” give the same tired advice interview after interview and article after article? If you pay close attention, they almost always claim the path to a comfortable retirement is through diversification, saving more, and living below your means.

Let’s explore each one a bit more closely:

  1. Diversify. They suggest you don’t put all your eggs in one basket, but then really only talk about paper assets (stocks, bonds, and mutual funds). How is that diversification? They should be telling you to invest in commodities, such as gold and silver, and real estate.
  2. Save more. You’ve been told to save for a rainy day, but where exactly will this meager savings get you? Do you know how much money you’d have to save up to spend 20-30 comfortable years in retirement? Let’s face it: The interest you earn on a savings account is so low, it’s practically nonexistent — it certainly won’t help grow your nest egg.
  3. Live below your means. If you’re fine living in a world where you have to delay gratification and live without things that you want, then go for it. But wouldn’t it be more exciting to find ways to grow your income and expand your means versus cutting your expenses?

How to Tell Good Advice from Bad

The first thing you have to know is what advice or information you’re looking for. This depends on the dream and goal you aspire to — perhaps it’s to achieve financial freedom. It also depends on your plan to get there.

Your plan is simply what you have to do to attain your dream. It primarily involves the acquire and apply elements of the Triple-A Triangle (if you aren’t familiar with this concept, read How To Get What You Want). Your plan does not need to be complicated. For instance, if you decide you want to be a tennis player, that’s the dream. Your plan will be to buy a tennis racquet, tennis balls, tennis shoes, and a tennis outfit, and to take lessons three times a week. That’s the plan.

You’ll want to add one more piece to your plan: A way to keep score to tell you whether you’re winning or losing. In tennis, the barometer could be the number of times you consistently hit the ball over the net. In your financial plan, the indicator may be the number of consecutive days you learn something new to bring you closer to your dream.

Second, you have to know who you want to accept information from. You must choose what information you want to put into your brain and which teachers you want to learn from.

Third, you have to know which advice and information are relevant and meaningful to you, and which are not. For example, a certain morning finance TV show may not be relevant to you if it doesn’t align with your goals or values — so decide what is beneficial to your life. Learn to discern what information means to you, and also what it doesn’t mean.

Question Everything

Young children question everything around them. They ask “why” a lot. Learn to be like a toddler and question all financial advice that comes your way versus assuming it’s a fact. Ask the questions:

  • Does this make sense for me?
  • What are the pros and cons?
  • Will this get me to my financial goal?

You may not always know the right questions to ask, so just keep asking! Every question you ask is the right question if you’re smarter as a result and if it leads you to make better, more informed decisions about you and your money.

It’s time to think for yourself and stop blindly following the advice you hear from “experts” — it’s time to discover which advice, information and strategies work best for you. If you’d like some tips on how to find authentic and knowledgeable advisers, don’t miss chapter 10 of my book, “It’s Rising Time.”

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