Evaluate Advice Using a Framework of Questions, Part 1

As my wife and I prepare to have twins in April of next year we’ve started to make some initial decisions about how we will care for the kiddos. We both understand that our lives are about to change in unexpected ways, but rather than just letting things happen to us we’re taking the proactive step to research options well before we’re pushed into a decision from exhaustion or stress.

The good news is that we have several friends and family members that have had twins, and therefore advise is plentiful. The dark side of this “help”, however, is that we are already beginning to see that our “advisers” have no ability to understand or objectively evaluate choices other than the ones they made.

This leads me to one of my favorite recent posts from Lazy Man, which outlines 5 questions he asks himself before making a purchase. To paraphrase, Lazy Man’s questions relate to product costs, needs vs. wants, product research, and ways to reduce the cost.

I would like to build on this question-based solution to help me evaluate advice from others. I’ve found in the past that a large part of creative solutions comes from reframing questions and by using frameworks of questions that can be applied to a situation. Below is my initial framework of questions to evaluate the advice of others:

• Did the person giving the advise try other options you are considering? If you can find someone that has tried several different ideas they will be very helpful and informed as to the consequences of their decisions.
• Have you spoken with someone that took an alternative approach? When it came to cloth diapers, my wife and I decided to go speak with a small business owner in town that sells (and personally uses) cloth diapers. This woman was a wealth of knowledge and was able to tell us about others experiences, including mothers of twins. She also gave us more of an education in 30 minutes than what I was able to learn on my own in five hours.
• If the advise that is being given is considered “standard” or “status quo” at this time, was there ever a time when another option was used? Take diapers for example. Everyone we’ve talked to thus far was pretty much freaked out when we mention that we’re considering cloth diapers. Comments about it being too messy, too much work, the diapers not fitting, etc have been legion. This viewpoint is short-sighted in my opinion. Disposables diapers didn’t even exist fifty years ago, and most people couldn’t afford disposable diapers 30 years ago. Perhaps in another twenty years people will say: “you cook your own meals at home? That’s too messy and too much work. Why don’t you just eat out every meal?” There are also numerous benefits that people simply don’t know about, like reduced diaper rashes and the tendency to potty train at an earlier age.
• What would be the result of taking the exact opposite advice? A LOT of people and professionals recommend buying a new crib and car seat to ensure that the one you use meets the latest safety standards. Although the media has no incentive to broadcast this, I’m sure there are also a LOT of people to buy used cribs. My wife’s parents couldn’t afford a crib and used one that was given to them for example.
• Is there a way to change the downsides or risks of taking the exact opposite advice? I love open ended questions, and usually if the quick answer is “no” the person responding simply lacks creativity. There are always options and ways to adjust a situation. What if you couldn’t afford a new crib? Would you simply not get one at all? Why do you need a crib at all? Is it possible that you could find someone you trust that would sell you a used crib so that you know it’s never been damaged? Could you spend a whopping 30 minutes to research a specific make and model of a product to see if it meets the current safety standards? Could you build a crib that meets the current safety standards?
• What is the source of the advice? Most advice seems to come from a peoples’ personal experience, but if you did a little deeper sometimes you’ll discover that their choices really came from someone else. A lot of people read a single book or two and, due to the power of the written word take the advice as gospel. If you’ve ever read through a few books reviews on Amazon.com you’ve noticed that most books have several outstanding reviews and several reviews that say “this book ruined by life.”
• Do you trust the person giving the advice? In our case we absolutely trust the people who have given us advice thus far. But I’m sure this will not always be the case. As Dave Ramsey says, “Don’t take financial advice from broke people.”

My advice would be to develop your own framework of questions when making major decisions, like career decisions, relationship decisions, and family decisions. This recommendation can be applied directly to several key personal finance standard recommendations, including:

• “You need over $1,000,000 to be able to retire.”
• “You’ll never be able to get a good paying job if you quit now and try to return to the workforce later.”
• “You should on withdrawal 2%/3%/4% (you choose) from your retirement portfolio a year.”
• “Invest in stocks. It’s the only way to beat inflation over the long term.”
• “Don’t retire outside the U.S. You’ll never be able to get healthcare/do the things you want to do/learn the local language.”
• “You have to have an emergency fund equal to six months of income (or expenses).”
• “Starting a business is risky and you could lose everything in a blink of an eye.”
• “The best way to invest for college is in 529’s/coverdale IRA’s/Roth IRA’s/prepaid tuition plans.”

The list is endless, yet there are always creative people that successfully find ways around the “normal” advice and flourish by using creativity and customizing their plans based on their own personalities, strengths, and weaknesses.

Image Credit: laughlin

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