Thursday, October 20, 2011

In Praise of Skepticism

I've seen a couple of posts around the blogosphere lately encouraging financial literacy. I'm all for this - but I think it can be boiled down to one really simple skill: skepticism.

Being skeptical prevents you from falling for Ponzi schemes and other bad investments.

Being skeptical keeps you from rate-chasing, therefore wasting time that could be spent generating more money or just enjoying your life.

Being skeptical means you read everything you sign before you sign it, and ask questions about anything you don't understand.

Being skeptical protects you from believing advertising that tells you a product or service will make your life perfect.

Being skeptical requires you to ask "why?" and "how?" to every financial opportunity, thereby exposing the hidden truths underneath.

Being skeptical encourages you to save for the future instead of relying on the government to provide for you.

Being skeptical prevents you from falling for the snappy lines from politicians, bankers, and advertisers and encourages you to rely on your own intelligence, willpower, and intuition.

Being skeptical means you understand that no one cares about your money as much as you do - and so the responsibility for managing your money belongs to no one else but you.

2 comments:

  1. Great post!! Without a brain in your head, you won't get far!

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  2. In praise of that post. Well done, superbly written. I do rely heavily on the mantra "if it sounds too good to be true, it probably is!"

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