Why professional credentials cannot be solely relied on

I sit here with a number of accounting, financial and coaching certifications and am currently undertaking postgraduate study in psychology. But what does it all really mean? Simply that I studied and obtained the knowledge required to pass the examinations successfully. Does it mean I am qualified at the professional and personal level to perform in my current career? I would have to say that you cannot determine a person's suitability for a career based on qualifications alone. However the downside to this is that there is no measure of career effectiveness or suitability.

I decided to write on this topic after reading a book called SHAM (Self Help and and Actualization Movement) by Steve Salerno. It brings up many interesting facts and though not in agreement with all of them there is one key point that stands out - to be successful in business (I'll define success here as financial) you do not need qualifications. In fact many who are qualified are not successful whilst those who focus on sales through media are. Point in case internet and self-help entrepreneurs versus college professors. This could lead us to believe that qualifications are not necessary and for those who can dupe and create perceptions for the majority of society untold riches await.

But what about those with qualifications? Well there are many people out there with medical, financial, engineering qualifications who are disasters and have caused grief. Having a medical degree doesn't automatically qualify you as a medical genius the same a financial planner or holder of a math degree can guarantee success in the financial world. In fact a lot of people hide behind the perception that a qualification means you are successful. Note I use the word successful rather than expert as the definition of an expert is again a perception, not a reality. Media plays a large part because often if you see or read something in the media you automatically are programmed to believe that what they say is true.

What society has to do is (1) wakeup and take responsibility for itself by thinking rather than relying on so-called experts (2) rather than rely on the qualification provided or expertise claimed look at how the person has lived their life, their actions and results.

Do your own research (DYOR)

For a while now I've been tracking and analysing the use of words used in our financial media to reflect the mood of the stockmarket. Words such as 'plummit, freefall and pain' and phrases 'sea of red', 'earnings letdown' and 'sharemarket jitters' are used time and time again. Likewise on an up day you see positive reflections used. Interestingly enough the same phrases are used over and over again but in reality nothing has really changed - the words are simply words used by media to sensationalise the situation and influence your perception of financial events.

Australia and UK are not so bad as the US as with the latter the media articles are often highlighted in green or red to emphasize a point. When we read this information from a source we believe is legit then our emotions take over - when in fact we receive nothing really of substance on a daily basis. To be a little clearer stocks move up and stocks move down on a daily basis - do you really think the core financial health of economies or the valuation of companies fluctuates like this? Of course not...the stockmarket is built around perception and in no way represents any kind of financial reality.

A lot of emotion exists in the stockmarket and for the uninformed investor can create havoc on their financial plans and their quality of life, the latter due to perceived stress surrounding their investments. A key reason is that many of us do not really know what is happening in the financial markets, whether we will have more or less wealth tomorrow, next month or next year. This is due to ignorance. Therefore we turn to so-called 'experts' who tell us we should use their trading systems of which again we know nothing of and then wonder why they don't work. We read and see media that tells us all sorts of things which in the overall scheme of things mean little to us. Compare today's stockmarket level to that five months ago and you wil see little change. However consider the media communications that have taken place and the level of emotion that has been created in the market over the 'so-called' credit crisis and market volatility.

Upon much research I've discovered that is the answer - to do your own research (DYOR). By that I mean research your investments, learn more about what they truly represent, why prices move and why they don't. Look into the volatity that is, potential price fluctuations of your stocks (very important for more speculative companies) and acknowledge your own risk appetite. One way I like to look at it is 'would you rather win or not lose'.

Bottom line take responsibility for the way you behave and perceive money and be aware that the media is there to support a business - not there for your benefit or education.

Using time effectively and efficiently

Time is always something we desire more of however it is the one thing we cannot control - it is also a resource that is limited in nature. We all want more time in order to achieve more of our goals in life rather than seemingly spending more and more minutes on admin such as banking, grocery shopping etc. Therefore how can we ensure that we make better use of our time if solely for the purpose of not looking back at our life and regretting certain things we didn’t achieve simply due to a perceived lack of time.

The first step is to become aware of how you are actually spending your precious minutes on a daily basis and over the course of the week. Are you spending time on the tasks that will allow you to achieve your goals? Have you aligned your time to reflect the importance of the goals in your life? Have you even spent time considering what your goals are and what you need to do in order to achieve them? Habits can either aid you to achieve in life or detract from your ability to achieve. People may see habits as good or bad but I would prefer not to label them this way. A bad habit may have a useful purpose but only up to a certain point, therefore it is not necessarily bad.

The second step is to focus only on those actions that are proactively going to allow you to achieve your goals and to reduce or rid yourself of your habits that are not. One example is that of watching television. Now watching a certain amount of television may provide some benefits – enjoyment and relaxation being a couple. However at which point does watching television impact your ability to achieve your other goals? If you watch only five hours of your favourite programs rather than allow yourself ‘television creep’ (where you end up watching a lot more then intended) then you provide yourself with more hours automatically.

The third step is to identify ways and means to become more efficient with your time. Time means money simply because there is a financial opportunity cost attached to every second of your day. One hour less sleep or one hour less television produces two additional hours of earning activity. Look for ways to double up on actions during the one time period. For example whilst cooking dinner listen to study CDs, work on your hobby on your laptop on the bus ride to work, sending out laundry, ensure all bills are paid via direct debit and listen to your favourite music whilst writing emails (and reduce the latter to once a day). Changing your habits is only as difficult as you wish to make it but it is advised to work with a professional coach in order to change your mentality and motivations behind how you choose to live your life. There is no better time to change then today. Realizing you wanted to make changes five years in the future (what they call hindsight) is not going to help you but if you can visualize right now how this might feel it will allow you to make the necessary changes in your habits.