Difference between your money and other people’s money

In my line of work, I run across all kinds of young guns who know every answer to every question and have no trouble spending someone else’s money. The real rub is they don’t want to spend their own money. They are happy to give you all kinds of advice but when it is turned back on them, it is a different result.

Perfect example is me. A few years ago, there was a company that went public on the stock market. The stock opened good and within a week had lost half its value. I literally walked down the halls of our office and told people they should buy some of this stock. When I got back to my office, did I personally buy some? No. Why? it was my money versus someone else’s money. Ha. I should have followed my own advice because that stock has gone up 15 times.

Let’s look at a silly example of the same concept. Your children. Have you ever heard someone that doesn’t have children give advice on how a parent should handle their children? Watch that same person when they have their own children, and you will see a person who now understands this concept. I had a stock guy call me one day talking about where I should be investing, and I remember asking him how much of that stock he personally owned. The guy went quiet on the phone and never called back. ha

When I am speaking with a prospective client, one of the first questions I ask is if they need to raise the equity or if it is their own. How they answer that question will drive much of the conversation.

There are always people that want to tell other people what they should be doing. Heck, the south was built on gossip that took place on front porches where people gossiped and opined on what their neighbors should be doing. I find that a good question I try to often ask myself is, what would I do? KT

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