At Haydel, Biel & Associates, we’ve worked with quite a number of clients over the years. And although we’ve seen our fair share of successes, we’ve also seen people make the same mistakes over and over again. We want to share those mistakes with you today, so you can make a plan to avoid them.
Ready? Here are the four most common financial mistakes we see.
1. Selling Or Buying On Emotion
Our emotions tend to overpower rational thinking—especially in times of crisis. A news report may fill us with fear, then our brains kick into survival mode and we do whatever it takes to protect ourselves. Sometimes that manifests itself as stockpiling toilet paper and hand sanitizer. Other times, it may look like wanting to pull out of the stock market when it’s taken a sharp dip.
Money is emotional, there’s no doubt about it. And our emotions have never been put to the test more than they have in 2020. The key is to keep your eyes laser-focused on your long-term plan, so you can stomach any gut-wrenching turns the market (or life) may throw your way.
2. Lacking The Discipline & Patience Needed To Reach Savings Goals
Building wealth is a marathon, not a sprint. Yet many individuals assume they’ll see instant progress the moment they start working toward their savings goals.
But it’s important to remember that building the life you envision for yourself requires discipline and patience. Whether you’re hoping to retire early, pay off your mortgage, or fully fund college savings accounts for your kids, it takes time. Remember, slow and steady wins the race.
3. Not Having A Financial Road Map
Could you imagine going on a cross-country road trip from Pasadena, California, to New York City and not using any type of GPS or map to get there? You’d be completely winging it, and the chances of you making it to your destination would be slim.
The same goes for your financial journey. Just as a map can help you reach your cross-country destination, a financial road map helps you reach your goals. Yet many individuals don’t have an objective point of reference to track progress toward their goals. They just assume they’ll get there if they set aside a little bit of money each month.
While you certainly could reach your goals this way, you’ll have a much higher chance of success if you have a financial road map to follow (and you’ll be much more likely to stick to your savings goals, as we discussed above).
4. Having A Team Of Professionals Who Don’t Collaborate
It’s not enough to have a CPA, lawyer, and financial advisor you go to. You need a cohesive team of professionals who actually collaborate with each other. Sure, your CPA may advise you on taxes, your attorney may help with estate planning and litigations, and your financial advisor may help you achieve your financial goals. But together this team can use their specialized skills to catapult you to success.
If you currently have a CPA, lawyer, or financial advisor who isn’t willing to work with other professionals on your team, it’s time to replace them. You deserve to have a team of specialists collaborating on your behalf to produce the best outcomes possible.
How We Help You Avoid These Mistakes
If you’ve made any of these financial mistakes, don’t stress over it. It’s not too late to change course. At Haydel, Biel & Associates (HBA Wealth), we’d love to help you put together a comprehensive financial plan that allows you to avoid (or recover from) any of these financial mistakes. We also collaborate with all of your financial professionals to make sure you’re getting the most holistic advice possible. To get started, contact us at (626) 529-8347 or email Ricky directly at ricky@hbawealth.com.
About Haydel, Biel & Associates
Haydel, Biel & Associates is an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at ricky@hbawealth.com.
The commentary on this blog/website reflects the personal opinions, viewpoints and analyses of the Haydel Biel & Associates employees providing such comments, and should not be regarded as a description of advisory services provided by Haydel Biel & Associates or performance returns of any Haydel Biel & Associates Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Haydel Biel & Associates manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.