Are you too embarrassed to ask for money advice? If so, you’re not alone. But why, exactly, are so many people ashamed to ask for financial advice? Given we’re currently living through one of the most significant recessions in recent history, why are we hesitant to get help exactly? Well, there are a number of reasons, some of which might surprise you.
3 reasons for the reluctance:
The most obvious reason is that people are simply too proud to ask for financial advice. Indeed, 17% of the more than 4,000 people surveyed by Royal London admitted as much.
Meanwhile, 35% of these people said they were “quite capable of looking after their own money.” While that is fine, in principle, it once again speaks to the potential ego.
About 15% of those who were surveyed assumed that either their finances were too simple to warrant any kind of advice or that they were not earning enough to make it worthwhile. However, a surprising amount of these respondents also had more than £50,000 in assets (31%).
This is the big one, with 47% admitting that they assumed paying for financial advice would be too expensive. But those that do seek financial advice always feel better informed and, on average, are significantly better off than those that don’t use the help of a financial advisor.
Bridging the advice gap
Financial advisors and other finance experts speak of an “advice gap.” That is a significant issue that the world faces as people are not getting the information to be able to take control of their finances.
The results can be big debts, stress, and anxiety. The gap has only widened during the pandemic.
The problem is that misconceptions are rife surrounding financial advice, with many assuming that they won’t be able to afford it or not understanding exactly what they’ll get out of it. The truth is that financial advice will almost always pay for itself and, more often than not, it will make you significantly more money.
Another survey found that 22% of respondents would rather ask their parents for advice than ask an advisor, while 15% would simply ask their partner. This is fine, in theory.
But in the former case, your parents might be too used to the way finances used to be and will give you advice that simply isn’t relevant in this day and age. In the latter case, meanwhile, you are literally too close to home, so the opinion is never going to be unbiased.
The bottom line is that financial advice is not something to shun but something to instead welcome with open arms. It’s never too late to learn how to manage money better. So, if you are curious, don’t be afraid to reach out to a financial advisor today and arrange a meeting.