Why The Best Person To Manage Your Money Is You .Self-reliance is the fastest path to financial freedom
When I tell people that self-reliance is the fastest path to financial freedom when it comes to investing, a lot of people look at me as I’m crazy. Why The Best Person To Manage Your Money Is You.In fact, I know many people who have told me they transferred their money to a company after trying to manage their own portfolio and experiencing significant losses. But each of the people with bad results rushed in without adequate preparation.
It’s the bad choices when learning the wrong investment systems, or the laziness that frustrates most people. But it doesn’t have to be. There was an article in The Economist last month claiming that the belief that more free time leads to increased happiness is a myth. Instead, the article found that people mostly use their excess free time to watch more television instead of engaging in any activity that actually improves their outlook on life. living.
There was an article in the Economist in January 2007 claiming that the belief that more free time leads to increased happiness is a myth. Instead, the article found that people mostly use their excess free time to watch more television than to engage in any activity that actually improves their quality of life.
However, I disagree with the conclusion of The Economist study. I believe all it takes is a simple reframe to change that conclusion. For example, if it is imperative that people cannot use extra free time to watch television but must participate in activities that require human interaction, then more people will have dinner with friends, participate a play, concert or sporting event, enjoy an impromptu basketball game with their children, and more.
I assure you that the research will conclude something else if that is the case. It is just a matter of personal responsibility for one’s own happiness.
In investment matters, the same rules apply. Why The Best Person To Manage Your Money Is You.I have read and heard a lot of stories where people’s retirement was ruined because they gave their money to someone else in an investment firm.
When a financial advisor loses a client’s money, he or she repeatedly tells the client not to worry because “the stock market goes down but always comes back” without ever admitting that the That loss is due to bad decisions. By the time these customers finally decide to withdraw their accounts, they have typically lost $500,000 or more. I really don’t know why people are willing to work so hard to save so much money, but leisurely give their money to others to invest in them.
But they have.If you take charge of your own investing life, I guarantee your results will be better than you imagined.
They may not improve immediately, but over time they will. Remember that this is a lifelong investment that you will make, so you should give yourself a few years to evaluate the results of your efforts. To achieve exceptional results, there are no shortcuts. However, when investing, people are always looking for shortcuts.
They pay newsletters thousands of dollars to tell them exactly what stocks to buy and curse them when they lose. They pay tens of thousands of dollars to their financial advisors every year and curse them when they lose. It’s strange to me that the most controlling people will put their heart and soul into their careers and work overtime because they don’t trust their co-workers to do the “right” job, turn around, and make huge concessions. Easy to control wealth. management that they worked so hard to create.
I often hear people say, “I don’t know anything about investing, so I’ll let the pros handle it,” and thus hand their money over to Merrill Lynch, UBS, or Goldman Sachs to handle. look after it. This notion is simply stupid for two reasons. Consider that most people have at least 12 years of schooling. The most important course you can take in those 12 years is Wealth Building and Investing, but since no traditional educational institution offers such a course, you must be prepared to take one. additional study to ensure the rest of his studies. financial life.
Considering the fact that the hours of a college class lasting 16 weeks, meeting four days a week with 1.5 hours per class, or 96 hours of study, is probably enough to put a person on the road to achievement. significantly higher financial returns, it’s just plainly silly that large numbers of people make excuses that they don’t have such time.
A second reason this notion is so stupid is that it’s very likely that your financial advisor and the fund manager he uses know less about investing than you do. 98% of fund managers tie their portfolios to their country’s main national index, so that’s something you can do while you sleep. Next time you meet with your financial advisor, spend a few hours before the meeting researching the global economy and use your knowledge to control the conversation.
Ask what are the best asset classes for 2007 and why. Ask yourself what emerging countries in the Middle East and Russia are capable of doing with their huge oil dollar surpluses and how their actions are likely to change global markets. Ask them