Core to my passion is seeing people take more personal responsibility for their financial decisions. In the end this is actually key to your financial success, and overall quality life. To take more personal responsibility means increasing your financial capability. I believe there is an obligation on yourself to get the right financial education and also on your financial advisors to help you by providing it and guiding you. In the end, you need to be able to make more informed choices about the products and solutions you are buying, and not just rely on others to decide for you.
At the moment the regulators in the countries which lead financial planning such as the USA, Australia, the Netherlands, Singapore and Ireland are pushing the consumer financial capability point hard. Just recently, the Irish Financial Regulator released a “Preliminary Report on Financial Capability in Ireland June 2008″ based on extensive consumer research.
The key point that is coming out of the Irish report is that you as the consumer must develop your skills, knowledge, attitudes and behavior. To me this goes to the very core of the Financial DNA Discovery Process. To educate you about your financial behavior and to provide a framework for your financial advisor to guide you. What you will find is that when you go through Financial DNA the increased knowledge and emotional comfort will make you more confident in the decisions made. As you make better decisions success will build more success.
There is interesting research from the University of San Diego which says: 5% of your wealth comes from investments and 95% from your behavior. So what should be the core of your financial education? Learning more about products or yourself?