The list of personal advisors is growing, with the personal trainer at the gym, the personal diet advisor and even the personal spiritual advisor.
I'm not sure I buy into this personal trainer-advisor thing, although the bible does say that a wise man seeks the advice of his advisors.
A few days ago, a survey showed the U.S. consumer confidence weakened to a 16 year low in March, pointing to a recession as 72% of the US economy is consumer driven. With consumer confidence dropping like the value of the dollar, a US recession is unavoidable.
Reference Article: Consumer mood signals recession
Modern Financial Advisors are Overrated
The other day I was talking to a friend of mine and he told me about how his financial advisor has helped him optimize his debt to buy a bigger home and a new car. Before I go on, I want to say that I love talking about money management and benefit greatly from my advisors.
But, if a financial advisor were to encourage me to increase my debt so that I could buy more things that I don't have the money for, then I would question the advice. But, I suppose it all depends on your perspective.
If someone receives financial advice on how to get further into debt or further out of debt, it's still financial advice. I guess the term 'financial advice' is taking on a broader meaning in today’s debt driven economy. Twenty years ago, the term was reserved for building wealth. But today, more and more, financial advice is about debt management to allow the highest standard of living today without regard for tomorrow.
If the smartest financial advisors in the world on Wall Street just lost trillions of dollars in the sub-prime housing crash, then who can you trust with your money?
Become Your Own Money Saving Expert
Improving your financial education is perhaps the best method to improve your financial outlook - but very few have even the basic financial education and the quickly changing market makes it difficult to stay informed.
As the US recession deepens, "Money Saving Experts" are going to be in high demand, as the trend can already be seen by the increasing Internet traffic of personal financial blogs. Sooner or later the majority of the public will need to increase their financial education. If you invest in your own financial education today – before everyone else, perhaps you could leverage your knowledge and create a new business helping other people get their finances in order. Becoming your own money saving expert is the first step. Who better to trust then someone who is successfully managing their own money?
Follow up article: You May Soon Need a Money Saving Expert