Developing Independent Financial Thinking

Independent thinking is basically the ability to think for yourself without the influence of any other party. It is said that it is a much needed ability in life especially if one wants to succeed in it. I believe this is true because without it, we're like leaves blown towards the direction of the wind at any given time.

When it comes to finances, it is important to develop independent thinking. Nowadays, we have many options and each one carries its own set of risks and rewards. Not everyone has the same risk tolerance but it is now a common occurrence that people are going a certain financial route solely because xyz is also going that route. These people are easily influenced by their peers, mentors and MSM.

Them getting rekt might not have been completely avoided had they develop independent financial thinking but it's impact could have been minimal and they can continue on their financial path with barely a few scratches.

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It's Easy To Follow The Crowd

Another way of saying it is follow the money. Yes, it has its perks especially in the beginning but in the long run it turns into a mindless pursuit that's ready to crumble with any sign of change. Following the crowd is easy because there's little to no effort on your part. Neither responsibility nor accountability.

On top of that, we're lazy creatures. I was recently watching a documentary in which it was argued that we're getting dumber and dumber. One of the main reason being the increasing number of distractions that are around us. Our minds are everywhere scattered in all directions.

With all that, it's easy to see why we hand almost everything to the almighty crowd and be busy with our lives thinking we're productive.

Personal Finance And Independent Thinking

I'm relatively new to personal finance. I started taking it seriously in my early 20s. What I noticed, however, is that many people around here were doing it wrongly. Nothing was 'personal' about their personal finance. It was more like 'majority' finance.

I asked a friend of mine why he was saving more than 80% of his monthly income, it seems a lot to me. He replied that it is the percentage recommended by experts. To indirectly make a point, I asked him whether it suits him and he replied with hmm, yes. I think so.

He's definitely doing well for society but for himself, not so. I believe personal finance must suit the individual and his/her current situation and values and principles. Independent thinking can aid us in this regard by helping us discover what's important and truly matters to us.

Thanks for reading!!