Buzz
Financial topics aren't as difficult as they often seem, yet many of us pretend to grasp them, just because we feel we should. As personal finance expert Carl Richards states, "when it comes to our money, there are no dumb questions."
This becomes especially important when applying for loans, like mortgages or car loans. Lenders or dealers often bombard you with technical terms, assuming you either understand or are too embarrassed to ask. If you don’t speak up, you might agree to something that harms your finances. Richards shares his own experience:
Recently, my wife and I met with a lawyer to handle some basic estate planning. As he went through the plan, we just nodded along, pretending to follow everything he said. We signed a few documents, shook hands, and left the office.
Once we were back in the car, we turned to each other and said simultaneously, “Did you understand that?” Neither of us had the faintest idea of what had just happened. The failure to admit our confusion cost us valuable time and led to us having to revisit questions that should have been asked from the start.
The key takeaway is, don’t hesitate to ask the other person to clarify things— asking questions is one of the most beneficial actions you can take for your finances. For more information, check out Richards' full article at the link below.
Photo credit: Sutha Kamal.
