The real reasons people take Professional advice
Russell Hathaway • 5 June 2018
In her new book, “Advice That Sticks: How To Give Financial Advice That People Will Follow”, Canadian neuropsychologist and executive coach Dr Moira Somers gives several reasons why people take advice:
- To reduce complexity. It is easy to become overwhelmed if you have lots of unfamiliar terms and information to assimilate. Experts help cut through the noise and understand what is relevant.
- To take action. Many people suffer “decisional paralysis”, particularly when they have too many choices. An expert helps avoid indecision and dithering.
- To save time. Delegating certain financial related tasks allows time and energy to be put to better use.
- To offload unpleasantness. There can be immense value in getting someone else to do bothersome and disliked financial tasks.
- To make someone else happy. There are some occasions, such as major life events, where seeking advice will be of indirect benefit to other people.
- To increase confidence. An expert can reassure you that you are on track to meet important financial goals, and help keep in check any over-confidence.
- To help make better trade-offs. An experienced adviser can help reconcile the disconnects between what you want and what you can afford.
- To receive encouragement. Changing long-standing money habits and behaviours can be hard to sustain. Being encouraged by someone who is on your side, and to whom you can be accountable, can keep you on track.
- To have someone to blame. Research suggests some people delegate primarily to cede responsibility and blame rather than purely to obtain good advice.
- To feel safer. Studies show the way our brains process information change when we make difficult financial decisions if we have the benefit of advice from an expert. In this situation, our brains look a lot more like when people feel a high level of trust and safety.
Source:
https://www.moneymarketing.co.uk/issues/24-may-2018/jason-butler-the-real-reasons-people-take-profes...
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Buying a home takes careful preparation and planning. As well as finding a property you like, you need to get your finances in good order before lenders review them and assess your ability to make repayments on your loan. Save up During the recent lockdown, many lenders pulled their ‘high loan-to-value (LTV)’ products which typically only require a deposit of 5% or 10% (often first-time buyers) to take out a mortgage. The good news is that lenders are returning to the high LTV market, but you may need to act quickly to secure the deals. This is where we can help as we have our finger on the pulse. Save as much as you can towards a deposit. Open a dedicated savings or investment account and make sure it’s paying a competitive interest rate. Check your credit score Even if you’re remortgaging or moving up the housing ladder your credit history will be important. A good credit rating can help you secure a better mortgage deal, with a lower interest rate. The general rule is the higher the score the better, and the more likely you’ll be accepted for a mortgage or other credit. If you’re looking to take out a mortgage or remortgage, check your credit score regularly. You can usually get a simple overview for free and it pays to check with several different sources. Credit Karma, Equifax, clear Score and Experian all offer a service to help you understand your rating. If you find it is lower than expected there are ways to improve it: Pay more than your minimum payments on credit cards Bring your overdraft down Close unused credit accounts Register for the electoral roll Budgeting It’s important to review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, it makes sense to close them down. Prospective lenders will also look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough saved to cover emergencies. Support from families Research carried out suggests the bank of Mum and Dad or even the bank of Gran and Grandad will help to buy 175,000 homes during 2020 by lending or giving you cash to help with a deposit or acting as a guarantor. Get some good advice As qualified and professional mortgage advisers we know what a good deal looks like, we know the market and we’ll do the hard work for you YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.