It’s not necessarily a trait we should be proud of, but we are. Most of us love to flaunt our ability to haggle and negotiate the fees that we pay professionals, almost as if they were scamming us out of our hard-earned money. We brag about accomplishing difficult tasks on our own without the need to depend on these experts. We try our best not to ‘waste’ money, even though the experts can make our lives much simpler. So, even if we know nothing about how our body works, we try to search the Internet and test homegrown remedies before we are forced to call on a doctor.
Are we really saving money on needless services and imposition of external expertise, or is the fee that we pay worth the money spent? When we talk of experts or specialists, we refer to people who have an in-depth knowledge in a particular field; those who know about a specific subject more than an average person. In companies, an employee with a niche skillset is typically valued more and commands a higher salary than a generalist. So, when it comes to a self-employed service provider, such as a financial adviser or a tax consultant, why do we hesitate to pay them the fees that they ask for? Here’s why you should.
First, they are providing a value addition that you would be incapable of attaining on your own. They know the tricks of the trade that you will not be aware of. They have spent several years learning a particular skill, and you are paying them not for an hour or half-an-hour of consultation, but for the years of hard work they have put in to be able to guide you in the right direction and save you money. When you approach a chartered accountant or a tax consultant for help, you are paying him for years of understanding tax laws; for helping you avoid mistakes while filing tax returns so that you don’t end up with a notice and penalty from the tax department; for bringing to your notice the deductions and exemptions that will help you save money.
Second, they will help you perform the task much faster and more efficiently than you would on your own. They help you save time that you could use on your own job to earn better. Their time is as valuable as yours is for your profession, and you are paying them for the time they are investing in you.
Third, you are paying them for your future comfort and stress-free life. When you approach an architect or an interior designer for designing your house, you are investing in a service that will ensure you have a house with better space utilisation, with minimal electrical or water seepage issues, with the comfort that you will live in and beauty that your guests will appreciate for several years to come. When you go to a financial adviser, he is helping you secure your future by showing you how you can retire without running out of money, how you can send your child for overseas education, or take that dream vacation without getting trapped in an umanageable debt. The fee you pay these professionals is a small price for the years of future comfort they are helping you generate and deliver.
Fourth, if they are doing a job well, they deserve to be compensated for it just the way you want your employer or company to pay you for your hard work. They do not have an appraisal system that provides them an annual increment. You are their employer, and they should not have to grovel and beg for their just remuneration. They should not have to negotiate each time they are doing their job that helps you live a better life.
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All of us have been in a financial dilemma when it comes to relationships. How do you say no to a friend who wants you to invest in his new business venture? Should you take a loan from your married brother? Are you concerned about your wife’s impulse buying? If you have any such concerns that are hard to resolve, write in to us at etwealth@timesgroup.com with ‘Wealth Whines’ as the subject.
Disclaimer: The advice in this column is not from a licensed healthcare professional and should not be construed as psychological counselling, therapy or medical advice. ET Wealth and the writer will not be responsible for the outcome of the suggestions made in the column.
