Thinking About Financial Literacy – Logistics

We have talked about using your values and resources to create a strategic vision of what you want and when. With those in hand it is possible to both find and assess ways to get those wishes. Tools, techniques and the people who can help you find and assess methods.

Now we are at the do it part.

You and I and everyone else has a circle of competence. We should learn to stay within it.

For example, if I strategically decide I need a new light fixture on the front porch, I assess my resources and need and decide on a maximum price I will pay.  A trip to the hardware store offers me choices that are too cheap, too expensive or just right for my goal. The fixture is the tool I want and the sales associate is my help in the decision. I exchange my money for the fixture and go home.

But I still have no light on the porch come nightfall. It is not yet installed. Logistics is the process of installing the chosen tool to achieve the goal.

This is a simple task and I would do it myself and expect no problems.

Do it yourself is not always my choice. I would choose to have an expert wire the house. I might be able to do it, but the price saved would not be worth the risk. Again the circle of competence idea. If you do things yourself inside the circle you will have no issues. If you go far outside, the unknown-unknown often bites you.

People like to save the price of an expert, but seldom assess the potential cost. Would you buy real estate without a title search or guarantee? It is easy to do, but would you take the chance that you might miss something? Would you do your own root canal? Again not particularly difficult, but there are unforeseeables you would know nothing about or how to address them until it was too late. 

Ultimately it comes down to this.

If the goal matters and you have selected a tool or technique that will work, why would you risk the whole thing because you overlooked some trivial detail that is outside your expertise?

Implementing often looks like the easiest part of the puzzle, but it is not. Details usually matter and most are invisible. In complex strategic and tactical environments like war, poor logistics guarantee failure. 

Plans that are supposed to make your life easier are not worth risking for want of some money to someone who makes it much more likely to happen.

Do-it-yourself is a trap. Think cost-benefit.

Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.  In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.

Please be in touch if I can help you.  don@moneyfyi.com  866-285-7772

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