The appeal of doing it yourself (DIY) is understandable. There is a great feeling that comes with doing something that challenges you, with being resourceful and learning a new skill. However, as there can be challenges to DIY, there may be more benefits to getting an expert involved instead.
We tend to be proud of what we create and place greater value on things we have made ourselves. There is a statistical difference between the dollar value someone places on something that they have built, compared to what another person would pay for it.
Making DIY look easy
With all the information we have at our fingertips, encouraged by the appeal of learning a new skill and guided by the power of Google and YouTube videos, we are encouraged to give things a go.
Whether it’s fixing that dripping tap, troubleshooting the laptop that is playing up or even investing your hard-earned dollars, DIY has never looked so easy.
The growth in DIY
The DIY mindset seems to be one that is on the increase. When we think of DIY, we tend to think of home improvements and fixing things around the home.
This market has increased by almost 10 million dollars in the last ten years. The statistics reveal more than half of us are taking up the tools, with 55% of homeowners deciding to take on home improvement and repair jobs rather than seek professional help.
It’s important to remember that DIY can be a lot more than just picking up a hammer – as our love of DIY also extends to our financials. The search for additional income in an inflationary environment has seen an increase in traders keen to take the reins and invest for themselves.
Over the past decade, there has been a steady increase in the share of retail investors, with equity trades by retail investors nearly doubling in volume from a decade ago. Equally, when it comes to getting ready for retirement, the number of people setting up self-managed super funds (SMSFs) continues to rise, increasing by around 9% over the past five years.
Things to consider
Managing your financial situation is an important and empowering task that can lead to a more secure and stable future. However, it's essential to consider the impact that effective financial management can have on your life.
Ultimately, the bottom line is that you want to achieve the best possible financial outcomes, and that does not always happen if you take a DIY approach.
For example, when it comes to investing, a number of studies have shown that DIY investors tend to underperform the market – this underperformance ranges between 1% to 10% per year.
Having a financial expert involved
The trick with any form of DIY is to do your research, understand the task and what’s involved, and acknowledge when you might benefit from a helping hand.
There are times when it’s okay to try things yourself and times when it’s best to seek advice and support. You can still learn and gain skills that you can apply to future situations, but it can make sense to maximise your efforts while leveraging the skills of the experts.
When it comes to your financial life, whether you’re investing and growing your wealth, protecting your wealth, retirement planning, or estate planning, there is a lot to understand and consider. Speaking with a financial expert can add a lot of value and help you avoid any potential challenges.
Next steps
There is a significant contrast between navigating through financial matters on your own and seeking proper guidance to achieve the best results and outcomes for you.
Our team of experts take the time to understand your goals and tailor strategies personalised to you. To ensure your finances are helping you reach your true potential, speak with your local Nexia Adviser today.
