In fact, simple application of your knowledge is the key for success in Personal Finance. You will appreciate that mere expertise without application does not take the person forward. May be, at times, expertise comes in the way of application. I am reminded of an analogy from Yoga; if today we conduct a debate on yoga, you can find many experts, who can go on and on about yoga. If you ask them about their own consistent practice, more than 50 % will reply in the negative.
Yes, certain amount of knowledge is needed to ask the right questions to the experts. It makes a lot of sense to leave the expertise to the experts. Of course, you need expertise in your own field; for example, if you are a software engineer, you need to have the best expertise in software. This expertise will lead you greater achievements based on your application. So even in your chosen field, consistent application is the key.
Coming to Personal Finance, your simple application is only to take actions (mainly investments) as specified in your Financial Plan. This is not a rocket science but involves discipline to follow the plan. The only other action that we at HappyMentor.com recommend is to have a monthly review with your Financial Mentor. On the contrary when you start analysing the market, you may get confused. The saying, “Too much of analysis leads to paralysis” is true even in Personal Finance.
We discussed in our blog, ‘Multi-baggers’ that one has to stay invested in the market for a long time horizon. The real trouble for many people, who develop some expertise in Stock Market, is that they will get confusing signals. Believe me, the market noise is too much and you can get carried away.
In my opinion, it is better to carry out your applications as aforesaid and keep talking to the experts and your mentor. Do you agree?
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