Get Advice from People Who Are Where You Want to Be

I was recently listening to a podcast by Andy Stanley and he suggested this bit of advice for people looking to make good decisions:

Get advice from people who are where you want to be.

This really made an impact on me. I've been trying to say this here in many different ways, but just didn't have the words. Then Andy simply gave me the words. I'm not trying to brag here, but I do want to say what I mean, so please take the comments below as someone who is simply trying to be honest to get a point across. With that said, here are some thoughts I had on the saying above:

1. This is exactly why I wouldn't go to a financial planner who had lots of head knowledge but was not doing well financially himself.

2. I've done fairly well financially up to this point and the reason is that I have followed my own advice (like growing my income). It's this advice that I share with you daily in order to help you all grow your net worths. Most of you are younger than I am (many by a decade or two) and with a good start now, you have excellent chances at being ahead of me financially when you reach my age. This is my wish for all of you.

3. Not everything I say will be right for you (of course), but hopefully enough of it will resonate with you and you'll apply it. If so, I think you'll certainly grow your net worth to a decent level. That said, be careful what you pick and choose to follow. If you miss even a few of the basics, all the other suggestions won't get you back on track.

4. The principle of "getting advice from people who are where you want to be" works in any area of your life, not just personal finance. It works in marriages, business, raising kids, and so on. Find someone successful in an area where you want to be successful, ask them for advice, and follow what seems to be right for you.

5. I'm not saying to totally ignore people who are "wise" and yet are not "successful" in the area where they are giving advice. But I would say that if the unsuccessful person says one thing and the successful person says another, it seems to me that it's clear who you should follow.

Ok, now I'll get off my high horse and return us all to lighter topics. ;-)

Comments

[savvy]

I agree with the sentiment but quite frankly, I'm having a hard time finding those people who are where I want to be.

Outside of pf bloggers, I haven't encountered anyone whose financial goals are anything similar to mine (i.e. early retirement, etc.) I have no one to trade tips/encouragement with in real life.

[FMF]

Savvy --

Some ideas for finding these people:

*Higher ups at your place of employment
*Church
*Volunteer organizations/committees

[Trent D.]

What was the line Warren Buffett used to use? "Wall Street is where people drive their Rolls Royces to get financial advice from people who ride the subway to work."

This is great advice that I discovered for myself - one such person is my Sunday school teacher, who is a high ranking manager in a drug sales company. Another is the only person my age (24) I know more successful than myself, who is quickly moving up the management ranks in one of the largest companies in the USA.

You're judged by the company you keep, and certainly there's a lot to learn from the right company as well!

[Kirk]

This is good advice although as a financial planner who is younger and doesn't have a multi-million dollar portfolio I think you need to do more than look at a financial statement. I know lots of older planners who have made a lot of money by pushing product.

One time I attended a Financial Planning Association meeting where a planner (really a broker) who made a million dollars a year was speaking. Tryiing to model myself after him, I asked how he did it. I figured someone who made that kind of coin must be a great planner who provides strategies that really builds his clients' wealth.

He said, "I recommend whatever fund offers the highest commission or best trip." So his clients weren't getting the best investment portfolio. Rather, they got what paid him the most regardless of the fund's performance. And, as you can imagine, the poorer performing funds tend to pay higher commissions because they can't stand on their own merits. And, most folks don't know that insurance and mutual fund companies give trips, merchandise, and even cars to salesmen who sell the most product.

So I agree that you need to learn from experienced people. Just don't assume that a fat wallet means they really match your vision or principles.

[Scott]

This concept reminds me of an expression that I have found to be generally true.

The expression is: "Your salary is most likely the average of the salaries of your 10 closest friends.".

This seems true to me because many times you get input and advice from your closest friends. It is also probably true because some of your friends might be people you work with and maybe even have the same job and therefore a similar salary.

[Sara]

But I don't know anyone who is a professional go-cart racer! Seriously, though, I think you're right on the money here.

[Curt]

These people are hard to find.

[Hank]

This is so true. I especially like applying this to other parts of my life besides finance (#4). In the military, you learn a lot about your next job by watching your boss. What do you like about his leadership style? What do you hate? I try to take the best attributes from all the bosses that I have had in order to be the best leader of Soldiers that I can.

[Ann-Marie]

I couldn't agree more! In fact, I think this advice applies to other things in life like relationships, career success and even personal hobbies. After all, if you're in a grocery store and are wondering how fresh the vegetables are, are you going to ask the butcher?