Recently, I wrote an article with 6 tips for finding good investment advice. From the feedback I received, this is an area that holds a lot of interest. In today’s post, I want to expand on avoiding paralysis by analysis, which is the first money expert tip.
Here are 3 tips for avoiding analysis paralysis, which comes from having too much information, possibly even in the wrong areas altogether.
1. Figure out where you need to focus first. If you need to increase your cash flow so you can start the initial funding of a savings plan, then there is no need to spend a lot of time studying investments that require a large amount of capital. First, focus on a guru that can show you how to make more money and increase cash flow. Later, move into learning how to invest the money you saved from that improved cash flow.
2. Start by following just one expert in the area you have decided you need to focus first. Add another expert as your knowledge progresses and the need arises. This will help you stay focused and avoid feeling overwhelmed.
3. Begin by gaining broad based, big picture knowledge about overall personal finance or investing, depending on your current stage, to help you clarify and accomplish your long term financial goals.
Don’t start with a stock option course, for example, if you first need to figure out how much money you should allocate to this type of endeavor, and how it correlates to the other parts of your investment plan. I sometimes talk with women who first invested in an advanced course, such as an expensive forex or options trading, before they clarified their overall objective, or learned anything about the overall financial markets.
You may want to take a few minutes to watch the Financial Woman free Grow Your Money video series to clarify the 5 steps to growing your money. It will provide insight into some of the above points. Aim to take in the right information, at the right time, and you’ll gain financial peace and clarity, step by step.