In the last 20 years, the technological advances of computers and the internet have democratised access to information about money and investments and made it very easy to buy and sell many investment types, very quickly and at low cost.
But as I’ve said to my kids, and perhaps your parents said to you “Just because you can doesn’t mean you should.”
I believe there are 3 essential elements you need if you’re going to successfully manage and invest your own money.
Firstly, you need the expertise to know what you are doing. You need to understand how to appropriately apply the available information to your situation and goals in your own best interests. That’s what you’d expect of a professional giving you advice.
Secondly, you need to be sufficiently interested and motivated to invest your precious time in learning the intricacies of expertly managing your own money. Does that light you up?
Thirdly, you actually need the time available to be as thorough as you’d expect of a professional.
If you have all three of expertise, energy, and time then it makes sense to manage your own money.
If you have none or just one of the three elements, then trying to manage your own investments will just be guessing and half-baked speculation. You will probably cost yourself much more than any professional will.
When To DIY Your Wealth Creation and When Not To
There are some aspects of managing your money I believe you should learn how to do yourself.
Pus there are times when you can blend doing it yourself with outsourcing.
Delve deeper into three elements in this episode of my Money for Life podcast: