I was raised in the financial industry to believe that when it comes to being a successful investor, you have to take the emotion out of the decision-making process. That belief still holds true today. About a month ago, I was flipping channels on TV and came across a well-known financial coach…he was promoting his new book and traveling around the country speaking to people. I was curious to see why this coach was so popular and how he had come to have such a huge following. He was asked the question, “How do I take the emotion out of investing?” Sitting on the edge of my seat, I thought, “this has to be it…” The answer he gave is what most financial advisors would give…proper asset allocation, diversification…blah blah blah.
Listen, to be a successful investor and to have a healthy relationship with money, you must acknowledge that all financial (and non-financial) decisions are seated in emotion. To deny your emotions when managing money is to deny your human-ness.
Do you remember how you felt when you earned your first paycheck? Excitement, Liberation, Freedom, a desire for more! And how did you feel after you bought your first home?Proud, Independent,Accomplished, Successful…yes? How about any other BIG financial decisions you have made in life…good or bad? The important question is this…did your decision, action, or choice come from your heart or from fear? How did you handle the Market Crash of 2008…did you act from your heart or from fear and panic? I was a Financial Consultant at M&T Securites at the time of the last Market Crash and I can tell you from experience, most of my clients reactions, and ultimately their decisions came from fear/panic. Those that sold their investments out of panic never regained their losses, losses on paper became their reality. Those that took pause, closely examined their options, and chose to stay the course, recovered.
Fear is good…when it is recognized for what it REALLY is. Fear is your teacher, it shows you where you can change and grow. Fear is “False Evidence Appearing Real”. You create fear in that lovely brain of yours! Why? To direct your attention to what needs to be changed/healed within yourself…for the good! So the next time you feel fear (panic, anxiety, doubt) try seeing fear as “Feeling Excited And Ready”! Now how does THAT feel??
That Money Girl 