I was looking at some research from the Co-Operators recently that highlighted something that has always been rampant among Canadian culture: we place a lot of pressure on ourselves to appear financially savvy. Fear of judgment is real, and I have a feeling it’s not just a Canadian thing, either. Everyone knows that personal finance is important, but we do such a bad job as a society of making access to knowledge on the topic available that it feels like our only choice is to pretend like we know what we’re talking about.

There’s a problem with that, of course.

When you pretend to have financial knowledge out of fear of judgment, it can often lead to a state of investing paralysis. In other words, it’s easy to become so absorbed with being perceived as financially literate that a person avoids engaging with the topic with anyone else, because god forbid someone find out they don’t know as much as they let on.

This is especially problematic when it prevents you from getting started with investing. You’re scared of being judged or taken advantage of, so you don’t talk to an advisor to get your investments going. Or, on the other hand, you hear all your friends and family talking about DIY investing, so you nod your head along with them… except that you have no idea where to begin or what to do if you were to go that route. So instead of either talking to an advisor or opening up a DIY account, you go with door #3: burying your head in the sand.

I get it, but… stop that, okay? Just stop. Right now.

The only person you hurt is yourself when you do that. Let me ask you: what’s 10 years of your life worth to you? Is it worth a little judgment or embarrassment – which is all in your head, by the way – to make smart decisions today that could let you retire 10 years sooner?

I sure think so. And consider this: 83% of financial advisors have met with people that were clearly trying to pretend to be more knowledgeable than they were. Clearly, you’re not alone in being worried about how you come across in the financial space! Next time someone starts popping off about cryptocurrency, or options trading, or margin accounts, just smile politely and take comfort in the fact that they probably don’t understand any more than you do on the topic. But hey, it sure is easy to regurgitate headlines you read online, isn’t it?

Speaking of which, there’s a lot of garbage info online. I read a stat recently that more and more Canadians – and not just younger ones – are getting their financial advice and knowledge from Tiktok. Yeah, let’s let that sink in for a moment. Anybody can create content on Tiktok, and you don’t have to have any certifications in finance or investing to create content on the topic.

That can lead to some problematic assumptions, like how apparently many Canadians view RRSPs as outdated investment tools. If you fall into that camp, I don’t blame you, and I’m not judging – but you’re also wrong 🙂 Go back and check out this post of mine to learn more about how RRSPs work, and why they’re still one of the most powerful investment tools Canadians have access to.

Wrapping it Up

I know investing can be scary. There’s way too much information out there, and too many options as to how to invest, who to invest with, and what to invest in. But the worst thing you can do is let fear of judgment paralyze you into doing nothing. By not investing, you’re shooting your future self in the foot, reloading the gun, and shooting your other foot.

Don’t be afraid to find a financial advisor, preface your conversation with “Listen, I don’t know much about investing, so I’m going to ask some stupid questions,” and then ask away until you get all the answers you’re looking for. And if you want to learn some of the basics for yourself, but don’t know where to start? Here’s a post of mine to get your going!