The best advice I got from a financial planner convinced me to make 3 life-changing financial decisions
- I used to be obsessed with making the "right" financial decision, but that often left me paralyzed, making no decision at all.
- Then, a financial adviser told me that the worst financial decision you can make is to make no decision at all, since delaying financial decisions can leave you unprotected or missing out on the benefits of having your money in the market for a long time.
- Since hearing that, I've started saving for retirement, opened a high-yield savings account, and bought life insurance to protect my family.
- A financial planner can change the way you manage your money - for the better. Use SmartAsset's free tool to connect with a qualified professional today »
In my 20s, it was easy to play free and loose with my money. For starters, I barely had any money to play with.
Retirement seemed oh-so far away, and saving for it wasn't a priority. I didn't have kids, so life insurance and a will were on the back burner (well, let's be honest - they weren't really cooking at all). I knew I needed to get around to sorting out my finances, but every time I started looking I became overwhelmed with the options and procrastinated.
As I approached 30, however, I found myself with two kids and two mortgages. I was the breadwinner for my family.
Suddenly, getting my financial house in order took on new importance. It wasn't just about me, but also about protecting my husband and children. And yet, I still struggled to make decisions.
The advice that changed my perspective
Then, I heard a piece of financial advice that changed everything: Making no decision is the worst decision.
About 18 months ago I was interviewing a financial planner for a story I was writing about catching up on retirement savings. I had pitched the story, in part, because I was obsessively researching, but never opening, retirement accounts.
The planner said something that stuck with me: "The worst financial decision you can make is to make no decision at all."
She explained that when it comes to retirement savings, time was the greatest asset. Every year you delay saving, you cheat yourself out of money you could be making from investments and interest.
But, this advice wasn't just about retirement. Really, it was true for any major financial decision: delaying decisions often leaves you unprotected and unprofitable.
Ditching perfection
The financial planner pointed out that delaying decisions is particularly common among women. Women tend to second-guess themselves and hold out for making the perfect decision, whereas men are more apt to jump in, she explained.
Sure, there are some generalizations there, but the sentiment really resonated with me. As a "good girl," "good student," and type-A personality, I liked to research endlessly in order to make the best choice.
But really, I had reached the point where all that research was hurting, not helping, my finances. Consider my (lack of) retirement savings. I was so consumed with finding the best retirement account that I hadn't committed to anything, so I wasn't saving for retirement. That was setting me back much more than choosing an account that was beneficial, but not necessarily ideal.
It sounds so simple, but the financial adviser's advice changed my life. Within two hours of our interview, I had opened a retirement account and started saving, something I had been delaying for years.
The power in decision-making
Since then, I've been more decisive when it comes to my finances. I wrote a will. I bought life insurance. I shopped around a bit for mortgage and car loans, but didn't waste time comparing more than three to five options.
Challenging myself to make decisions swiftly was empowering. Instead of feeling like I was waffling about decisions, I felt that I was taking control of my life and my money.
That was a feeling that grew exponentially with time. I felt the emotional security of having a will and life insurance. I saw my retirement savings growing slowly. The proof was in front of me: making a decision - any decision - was the best way to work toward financial goals.
I can't say for sure whether I have the best life insurance policy, the ideal retirement account, or the most lucrative high-yield savings account. What I do know is that - thanks to that piece of advice - I do have an insurance policy, a retirement account, and a high-interest savings account.
If I had continued to research and flip-flop, I wouldn't have any of those. By diving in, I've put myself and my family in a better, more secure financial place.
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