Finances are very difficult and very personal. Money matter is something that should never be meddled into and that should never be let to meddle into as well. Money and finances is your ordeal only.
But, being a trader, you must know a lot more about money than an average person. And of course, it is natural if you want to share your knowledge with the others, but, beware that financial advice is seldom appreciated and can even turn around to bite you.
Here are the top reasons why you should never give financial advice.
1. It may not work.
2. People are going to always come to you.
3. You are making a bait out of yourself.
4. You might now always be right.
1. It may not work.
When you are giving financial advice, you are leaning on your own experience with money and probably investment. And of course, this is a very personal and very individual thing. The strategy, that worked for you might never work for someone else. I will even say that it will not work, because one should possess the same set of knowledge for it to work.
All I am saying is that by giving financial advice, you are practically promising, that a certain strategy is going to work. And if it doesn’t, you are going to be the one who is going to be blamed after all.
2. People are going to always come to you.
Have you ever met a doctor at a party? Have you noticed what happens to them? That’s right! People are constantly asking them for advice and try to get free prescription and free visits. Doctors can never rest from all this. And there is a high chance that by giving out free and constant financial advice, you are going to doom yourself to the same fate.
I bet you do not want to turn yourself into a dispenser of free financial advice. You want to enjoy yourself and engage in normal talks – something besides the money. If that is not the case, then you are free to do whatever you want!
3. You are making a bait out of yourself.
If you are giving advice, then you must know a lot about money. If you know a lot about money, then you simply must have a lot of it. And if you have a lot of it, then you simply must love giving them away and loaning them to every member of the family and every friend. Plus, these are very close people. Do you really expect them to give it all back? That hilarious!
If you want your money to remain your money, then you should stay away from speaking out about it and just keep it all to yourself.
4. You might now always be right.
One thing that you should always stay away from is people losing money. And you do NOT want to be the reason of people losing money because of you, do you? You should always consider a possibility of you being wrong about money and investment possibility. This can result in money loss for other people. And this WILL result on troubles for you.
I would stay away from giving out financial advice just because of this – I do not want to be blamed for other people’s losses. That I know for sure.
