Heavy Thoughts + Difficult Decisions

Starting a new work week with a blog entry (as versus to with a book or my favorite music) ……

My Monday will end off with a business appointment and it’ll be home sweet home for me before a long day tommorrow (PD Day + Dinner Outing). Apart from meeting (have an idea already on what I want to propose), i have another major work item that needs to be settled this week and this is pretty tricky as it will force my friend/client to face some cold hard truths that he/she has been avoiding ……

Why the avoidance? And how can he/she see the light and ways of her folly accumulated over the years?

Many people (including myself) always think the problem is always xx on the surface. But as always, when you start to probe & think deeper into the issue, one would realise that the real, fundamental problem is something much more underlying & deep-rooted at the core!

One example that is specific to my work/business ……

When discussing with clients/prospects on the importance of protection (insurance) planning and/or accumulation (investment) planning, I get objections from time to time. Some common ones include the following:

** Lack of Budget / Cashflow

** Dislike Monthly Deduction (or rather find monthly deduction a burden due to existing fixed expenses)

** Market is going to crash (after a major correction), sell everything now! (Note: This is very common, and in a self-fulfilling manner, this is what many clients WANT to hear from you due to psychological loss aversion)

** Buying shares is better than unit trusts.

** I don’t want to buy life insurance because I do not want somebody claiming on my death (in 1 simple sentence, that person has a mis-construed concept that he/she can never claim on his/her life insurance policy)

I am not going into detailed explainations for each of these objections as it is not a financial blog. Specifically to the one on monthly deduction, all I can say the problem is not because the bank/insurance company is being a nuisance, rather said person has a bad habit of NOT tracking/managing cashflow.

Back to the ‘problem’ surrounding my client/friend, despite repeated counsellings/meetings/conversations, sometimes I still feel a tinge of sadness that his/her personal ego and pride is getting in the way to see the fundamental ‘root’ of the problem. That is a complete failure in managing basic cashflow and investments. Yes the term complete failure sounds harsh, and IS HARSH, but if by now he/she still does not see the root of the problem, his/her financial situation will never improve.

As much as I believe in positive encouragement (reference to Dale Carnegie), but sometimes, ‘hard love’ may be necessary in order for some people to ‘wake up their idea’ and see the real reality for themselves.

Tough call!

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