Sunday, March 29, 2009

Financial Arrogance at its Peak

Arrogance is simply ego plus ignorance. How many people do you know that hide what they don't know in a false sense of confidence? These are the people who are so self reliant you'll often hear them say, "I could do that better myself" or "I can't trust anyone else to do this". However, making money, investing, or starting a business all take a certain amount of team work. If you try to do everything yourself you are headed straight to failure or "burnout", whichever comes first. Hear are some tips to keep your financial arrogance in check.

· Know the Basics - It's a good thing to know the basics of accounting, finance and legal issues. It makes you a better client, employee or leader. However, there are reasons that people go to school to get degrees in these subjects. Even with a degree, staying on top of tax issues and legal changes can be daunting. There is no need to fill your mind with details that you can pay someone else to take care of.

· Learn to Delegate - This is by far one of the most desirable traits there is; major companies pay big money for people that can delegate effectively. If you can afford it, always delegate a task.

· Continue to Learn - So much of finance is momentum. Don't ever stop learning, there is always more to know. When you make your first billion then you can feel comfortable; until then keep reading.

Warning: There is a also a good side to arrogance. Your ego is the decision-maker in your financial life. Sometimes we weigh ourselves down with so much data, analysis and opinions that we become too scared to make a decision. When faced with this scenario, you need some arrogance. Always make a decision and be slow to change your mind.

This is a Guest Post from Rick Vaughn at The Truth of Credit. Rick's blog is dedicated to personal finance and educating the Least “Sophisticated” Consumer on credit issues.

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