Smart Thinking On Investing – May 19
Justin Castelli, author of All About Your Benjamins, heads up Smart Thinking this week with ways to change that negative mindset you may have about money. Sarah Li Cain, writer of High Fiving Dollars, teaches us how to set money boundaries. And A Teachable Moment’s Anthony Isola examines the ultimate investment we should be making.
Michael Kitces, writing for his own blog, looks at happiness and financial satisfaction. And for the New York Times, Carl Richards asks how we know when we have ‘enough’?
Your Money Mindset Sets Your Outcomes
- As the number one cause of stress among Americans, it’s no wonder that we should be adjusting our attitude more positively towards money
- A positive mental outlook can vastly improve our behavior, which in turn can benefit the financial outcome we’re seeking
- To achieve this, set a plan, focus on what you can control, and try not to lose sleep on past financial regrets—instead learn from history and move forward
Create Money Boundaries
- Begin to recognize when you spend money out of stress; it can be a hard habit to break; are you just saying yes to things you don’t really want due to other people’s influence?
- Align yourself with people who don’t stress you and your financial situation out
- Create your money boundaries by learning to say no, you don’t have to be harsh about it, but you’ll find a certain freedom in not caring what others think of you
Work on Your Happiness Portfolio
- You should have a financial plan, but ultimately, we should also all be investing in the most valuable portfolio of all—our happiness portfolio
- Your life experiences make up the core part of your future happiness, so get out there and do things; make memories, and mistakes, and take part in all sorts of other activities
- Don’t just spend money, spend time with other people; also, being in debt is a surefire path to misery, so accumulate a healthy level of cash and avoid this anxiety instead
How do you create your happiness portfolio? Share your comments in the section below
Does Money Buy Happiness?
- To some extent while money doesn’t necessarily ‘buy’ happiness there is certainly a relationship with having it and feeling more financially secure
- We are also less troubled by our lack of future income if we are sitting on an abundant amount of assets and income coming in at the moment
- So, hold on to enough cash that will make you feel ‘happy’ at the moment and ensure that the rest is invested—that way you’ll be both financially content and set for the future
- You could double your income by working twice as much in 18 months, but when would you stop and say enough is enough?
- While the extra income would give you extra breathing room, the money won’t necessarily increase your satisfaction
- Have a conversation with your partner and define where you believe the point of your ‘enough’ is—then work towards that until you reach it
Do you want to start investing on your own, but don’t know how?
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