Over the past several weeks, we have talked about how common it is for humans to construct elaborate, short-term excuses to justify behavior that runs counter to their own long-term interests.
Here are two final examples of common money mistakes:
9. “I just want certainty.”
Wanting confidence in your investments is fine. But certainty? You can spend a lot of time and money seeking that elusive feeling by trying to insure yourself against every possible adverse investment outcome or seeking investments that never fluctuate in value. It is dangerous to confuse short-term stability with long-term financial success. In my opinion, it is wiser, less expensive, and more effective to diversify your investments. Do not put all of your eggs into one basket, no matter how safe and secure that basket might appear.
10. “I’m too busy to think about this.”
People often attempt to control things that they cannot control—like the market and the news-media noise—while neglecting actions they can control—like investment costs, diversification, and the amount of money they deposit out of every paycheck into their investment portfolio. Life is complicated and challenging. But not giving adequate attention to paying yourself first with regular deposits into a well-designed, diversified investment portfolio will only hurt you. These are decisions you cannot delegate to someone else. You must decide to take control of the actions and techniques that will improve your probability of reaching and maintaining your own financial independence.
I encourage you to seek professional assistance to plan for your financial future. Be intentional. Avoid sales pitches. Work with a CERTIFIED FINANCIAL PLANNER™ professional who puts your interests first.
Don’t forget to check out part 1, part 2, part 3 and part 4.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s newest white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.