Knowledge is information.
Wisdom is applying it.
All the information in the world is worthless if none is applied to our daily lives, and applied so well that it makes a difference.
Leo Tolstoy said "Everyone thinks of changing the world, but no one thinks of changing himself." This statement cannot ring any truer than it does to the tune of finances. The knowledge, or information, must become wisdom; for only when it is wisdom does it alter things for the good.
In my 15 years as a financial adviser, I received much knowledge.
I also shared much knowledge.
But it was a rare day that I witnessed knowledge becoming wisdom and wisdom changing lives for the good. And unfortunately, unless there is a change in someone's reality, or daily life, than the entire effort is futile.
Explaining concepts such as diversification, dollar-cost averaging, the rule of 72, "pay yourself first," etc., were my attempts to change reality, both mine and my clients.
The most sincere change came slowly but when it did, it was powerful: be it performing plastic surgery to all the credit cards, refusing the 39th hand-out from Mom and Dad, giving to worthy causes for worthy causes' sakes and not for the tax write-offs, or maintaining better records because one spouse or the other preferred it that way and it sure did help at tax time.
So let's turn the spotlight on you. Maybe the situation at hand seems too daunting for you to tackle alone; maybe you're too embarrassed about the situation at hand; maybe the situation at hand has gotten OUT of hand. But like all ships who find that their course must be redirected, it is possible!
The checkbook doesn't balance itself. It requires a calculator and a pencil and a little time to go over each entry.
The retirement account statements must be filed in chronological order so that they may be more easily reviewed.
And when the W2s and the 1099s start trickling in during the month of January, they need to be filed along with the other tax papers that you have diligently been accumulating during the year.
One simple decision to do the right thing, financially speaking that is, could alter the course of one's financial life.
And you say "what is the right thing?"
Well, that's probably the easiest question of all to answer, for the answer most likely has something to do with adding or multiplying rather than subtraction or division.
And more important, it also means the thing which allows you a decent night's sleep.
Never, ever, ever forget: All the money in the world cannot buy a decent night's sleep.
So maybe your addition and multiplication is not as great as it should be; not to worry! It's never too little and it's never too late.
So do yourself (and the world) a favor and find one piece of financial information, one bit of truth, that you can transform into your daily life; a truth that will make a big enough difference that someone will say "Wow!", even if that someone is you (especially if that someone is you).
And, as Saint Augustine said "Sing it with your life, girl, not your lips!" (translation mine).
Donna Clements has 15 years of experience as a financial adviser with a Fortune 500 investment firm and also has 10 years of experience in legal association management. She lives in Roanoke Rapids.
