Many new advisors start out fresh from Financial Planning School with knowledge of the latest investment theories and insurance calculations. We know our graphs and how it enhances people’s personal finance.
So why is it so difficult to impart financial knowledge?
Rationally, we know money is important in this world where having more money means having more choices and experiences. So why don’t people jump at the chance to learn more?
Most advisors are desperate people. There isn’t a ready market for Financial Advice. Most will jump at the chance of making a difference in people’s lives. And so the stress may show through. Part of the attraction of Financial Planning is the possibility of achieving Financial Freedom. If there is no ease of dealing with an advisor, the prospect may think that doing a Financial Plan is a form of stress, not freedom.
We all did not learn Financial Planning in primary, secondary school nor university. To convince someone the value of Financial Advice, we throw all manner of facts and figures and technical know-how at a prospect.
But, we forgot that without proper context and experience, whatever information we throw at a prospect, is still OUR OPINION. Unless we are able to bridge that gap between what is in the prospects’ experience and our knowledge, there will be no realisation or transformation.
We are all emotional creatures and the best language is still emotions. The best emotions are conveyed by setting an example. People can see, feel and experience for themselves what Financial Freedom is by interacting with an Advisor. If the experience is not there, there will be no transfer of knowledge.
A maturation in the Financial Advisor also sees his/her clients able to refer more clients to go through the Financial Planning process. Clients will face the same problems as the Financial Advisor when describing what is it exactly that they benefit from Financial Advice. But, words don’t have to describe, everyone can see for themselves any transformation the client went through. Is there an ease of dealing with financial matters? Is there more freedom from financial worries? Is there more knowledge of financial terms and instruments? Is there improvement in finances?
In the end, experience matters. To be able to impart financial knowledge, one must be able to live a Life of Financial Freedom.