Who do you listen to?

I often read books, listen to Cd's and attend seminars on: investing, personal development and professional development. I am always surprised when that when I tell people this I usually get 1 of 2 reactions.

Reaction #1

"Aren't those for rich people. Why would you read a book on investing if you don't have lots of money to invest?"

Reaction #2

" What a waste of time! If you want some financial advice, I'll give you some for free."

When I hear either one of these reactions I smile and respond one of the following ways:

Response #1

"How do you think all of those wealthy got to be wealthy? Luck?"

Response #2

"I would love to hear your advice, how much investment income have you earned and what is your net worth?"

You see the only people I take financial advice from, are the people who have achieved financial success. When I think about "financial success" these are the 5 things I look for:

1. Positive Net worth
2. Debt Free
3. 50% Annual income + in savings
4. Investing that has yielded 10%-12% returns over the long run.
5. Reinvestment of investment income

You see when it comes to handling my money I only want to listen to people who have displayed a strong understanding and discipline with their own finances. Don't let a Friend or family member sway you from seeking wise financial council. These people may have some "good" ideas but if you don't see financial fruits in their life, don't put a lot of stock in their advice. Even financial planners often lack the personal experience in their own investing and financial discipline to offer sound advice. Always seek out the people who have the knowledge and experience to help you, don't listen to anyone else. They will either approach their advice from a negative point of view or give you bad advice resulting from lack of experience. So attend the seminars and read the books. It is better to learn infomation and skills before you need them, than it is to back track after you should have learned them.