It’s so easy these days to make money mistakes. It’s super simple when you are upset, angry or sad.
If you are experiencing a major life event such as divorce or death of a spouse, decisions can be easily influenced by vultures that want to take advantage of you. Take caution and certainly don’t make major financial decisions under stress.
Here’s how to handle money decisions when things seem out of control and you’re upset:
1. There’s no rush. I can’t think of one scenario that you absolutely must make a major financial decision on the spot. I’m advising that you just don’t do it. At least sleep on it. If someone is pressuring you then it’s time to walk away and get some perspective. No one should make you feel uncomfortable because you don’t sign the dotted line when they want it done.
2. Do your homework. Don’t jump the gun here. Take the time to do a little research. Get all the facts and be your own Financial Columbo! The internet is full of financial sites, blogs and resources to help educate you on the specific event you are going through.
3. Seek advice. Don’t just get advice from family and friends. Although they may help you stay calm. Seek out advisors that specialize in the type of event you are going through. That way you can make intelligent decisions. You might just realize you need multiple advisors and counselors to help you through it.
4 Get a second opinion. I cannot stress this enough. If you had a doctor diagnose you with cancer, wouldn’t you seek a second opinion just to be sure? Why wouldn’t you do the same with accountants, financial advisors, real estate agents and attorneys. Each of these advisors are knowledgeable in their own way, however they all have their specialties and their limitations.
Congratulations! Now you are ready to make a major money decision. You’ve taken your time, did your homework and sought advice from at least two advisors. If you don’t remember anything else about this article, the next time you have to make a money decision keep this in mind: step back and take your time. Don’t rush.
You took the time to read this far, right? Now subscribe here and you’ll get my financial ramblings every Friday via email.