Your family must know your financial data
Money has always been a private affair, be it family, friends or your colleagues. One will still be hesitant to share his/her financial data with his/her family as it can alter the family dynamics and impact other family members negatively.
From a trader’s perspective, sharing your financial data is inviting free advice which might not be productive. However, sharing the financial data with your family can be important because of the following reasons.
- One might get financially incapacitated at any point in time, and the family might have to step in.
- Just like trading, life is also uncertain. One might just get incapacitated or unfit to handle the financial data. Who should be your first go-to person in this case? Of course, somebody from the family you can entirely trust should step in.
- One can get a more comprehensive perspective on trading/investing from the experienced family members.
Following the crowd, may not be advisable to a trader. An experienced family member can surely help an amateur into the stock market with wise trading advice. Moreover, this would provide a broader perspective which would further improve the scope of trading activity.
- One can provide a first-hand opportunity to his/her family member to learn trading/investing.
Apart from getting advice from the experienced family members, it is a way to provide a first-hand opportunity to help your inquisitive family member learn trading or investing. It can help in mutual learning from both the ends.
Sharing of financial data with anybody can be risky provided it is done appropriately. Keep the following points in mind before going ahead.
Decide what to share
The purpose of sharing the financial information is to speed up the process of taking over the rein if need be and at the same time, help the family member learn the skill set so that they can use it for their financial management. It is essential to share information like the expenses, income, assets, liabilities, insurance policies and real estate documents. The purpose of sharing the data gets defeated if any of this is missing.
Keep it Precise
Keep the information you share, precise. Blabbering the entire game plan might just go against you. In the 21st century, money is what a game changer is, and greed overpowers it. So be very careful and precise while you are sharing you investment/trading plan.
Know whom to share it with
Trust and knowledge are two factors you should consider while sharing your financial data even with your family. One should not regret anything later. It can have serious repercussions if not thought about carefully. Hence, choose the person wisely!
It is important to be clear with your thoughts. Be ready to answer all sorts of questions asked by your family member and make sure they understand the importance of sharing that information with them.
Deciding all these things might be a stressful job at one point in time because there are multiple factors involved, but your family members will always be your first go-to person. So, don’t worry and have faith in the decision you make.
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