Are you making financial decisions based on facts or opinion?

Making well-informed decisions is crucial for financial success and well-being. However, knowing where to start or what information to trust can be a challenge. 

In today's world, so much information is available on the internet on almost everything, including personal finance and investing, that it can be hard to separate the facts from the opinions.

So, how do you know if you're making the right financial decisions?

Here are a few things to keep in mind while making crucial financial decisions;

  • Facts are based on evidence. They are objective and can be verified. Opinions, on the other hand, are subjective and based on personal beliefs or biases.
  • Facts are specific. They provide details and can be measured. Opinions are general and often vague.
  • The facts are consistent. Multiple sources can support them. Opinions may change over time or depending on who is expressing them.

When you're making financial decisions, it's crucial to gather as much factual information as possible. 

This means reading the scope, benefits, and limitations of the investment/insurance, researching investment options, and talking to financial professionals. 

Once you understand the facts well, you can start to form your own opinions. However, it's essential to be aware of your biases and open to new information.

Here are a few tips for making financial decisions based on facts:

  • Do your research. The more you know about your finances, the better you'll be to make sound decisions.
  • Familiarize yourself with the common investment biases that cause investors to make wrong financial decisions. 
  • Get advice from a financial professional. A financial advisor can help you understand your options and make the best choices to suit your situation.
  • Be patient. Financial markets can be volatile, so it's essential to be patient and not make rash decisions.
  • Verify: When something looks too good to be true, it is most likely not true. You may be presented with lucrative investment options that may look very attractive, kindly verify the source and facts in writing before investing.
  • Use the Right Source: Always obtain information in writing from the right source. It is better if the information is from someone who can be held accountable. If required avail personalized financial advice, instead of just relying on general information.
  • Obtain Relevant Information: A lot of information on the internet is customized for the different target audiences in different countries, and it may not be relevant to you. Countries in the West and East have different tax regimes, financial regulations, social security benefits, economic factors, risk tolerances, and product availability. 

Making financial decisions based on facts is not always easy, but it's the best way to protect your money and achieve your financial goals. 

By following these tips, you can ensure that your decisions are based on sound information, not personal biases or opinions.

Damodhar Mata-7-2With more than 11 years of experience working with more than 300 families from 50+ countries,  I can help you make well-informed financial decisions.

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