What does the field of Economics or any field in the financial sector for that matter have in common with the scientific fields like Physics, Engineering, etc? One would probably first guess that they have very little in common, especially from the point of view of those who are in the Sciences and who are happy to point out that the financial sector isn’t quite as precise and quantifiable as fields in the Sciences.
Right there is where this link between the two seemingly unrelated worlds resides – uncertainty. There is uncertainty in both fields regardless of what those in the Sciences might like to believe. After all, how many “known facts” have since been refuted by so-called “new facts” which come on the back of some new knowledge coming to light?
We’ll give the guys over in the Sciences one thing though, which is the fact that there is indeed a lot less uncertainty to have to deal with. I mean when you conduct a scientific experiment for example, the subsequent data generated to come to a conclusion can perhaps be backed up by a repetition of the experiment many times over, using different controls perhaps and taking into account many different environmental factors.
Now, I specifically sought to explain it in this way because if you look at it really, the financial sector is exactly like a scientific experiment. While there are certain results which you probably expect to come to light upon conclusion of the experiment, it doesn’t always go like that, does it?
Additionally, with more experience you gain in the field you begin to develop the ability to predict the results more accurately and again, this applies to both fields.
So I guess what I’m getting at here is that as much as the general feeling is that it’s not possible, it is indeed possible and is in fact encouraged for you to approach the financial sector with somewhat of a scientific method. Take all the advice you get financially with a pinch of salt.
Arm yourself with as much knowledge as you possibly can and immerse yourself in all which the financial sector has to offer, by way of investments, money management, banking, etc. You can only learn through practical experience because as much as the role of a figure such as a financial advisor may definitely have its place, if we were to truly challenge its existence we would be asking questions like why all financial advisors in themselves aren’t insanely rich to the point that they’d give out financial advice for free…
I’m not suggesting that it’s going to be at all easy, but unfortunately you’re the one who has to do the hard work of learning the ropes. A bank for example only wants to make more money out of you, so they’ll naturally tout their own lending channels over something like payday loans, when your choice between these two options would depend on exactly what you want to do with the money you want to borrow and how quickly you’d be able to pay it back.
Wherever it comes from, including this here blog, financial advice should always be taken with a pinch of salt.