Some years ago, our peers from Hightower Advisors in the USA posted this great video. It can drive home an important personal financial lesson. Here goes:

In the Indian context (and taking into account vegetarian tendencies) the video can easily be rehashed as a “Halwai (Sweet shop Owner) vs Dietitian”

You see, the goal of the Halwai is not to make you fit and healthy. His sole red hot burning agenda is to sell his goods. Period. Now picture the scenario where you go to the Halwai for diet tips. Its a match made in hell.

Though this sounds like commonsense, when it comes to our financial lives, most of us end up doing this mistake. We tend to take financial advice from the metaphorical halwai and not the dietitian.

The halwai of the financial world can be anyone who starts his pitch to you with product first. “This is the latest insurance policy, mutual fund NFO, stock IPO, F&O strategy, get rich quick scheme, cryptocurrency.” Buy. Buy. Buy.

The new age Financial Halwais also parade around as finfluencers. They bombard you on every social media platform you are on. Or as a talk show guest on CNBC, or a columnist in a magazine. Or most commonly as the relationship manager of your glittering bank.

The Financial equivalent of a Dietitian will make you work much harder before you see a financial product. The process will start with knowing your financial life inside out. Your fears and aspirations around money. Your blind spots which are more often than not, hidden in plain sight. She will then and only then, to steal a line from the video: “… absolutely give you her best thinking, on what’s best for you!”

The worst case scenario is when you start thinking that your halwai is your Dietitian. This leads to all kinds of errors in judgment. Over time, these errors prove to be costly to your financial well being.

As world class financial planner Carl Richards quotes:

Trying to pick the best investment before you’ve come up with a financial plan is like trying to decide whether to take a plane, train, or automobile on a trip before you’ve decided where you want to go.

So the next time you are dealing with someone from the finance industry remember to ask yourself the question:

“Am I talking to a Halwai, or a Dietitian?”