The Top Ten Money Excuses
Thank you to Peterson Hastings for posting this article by Jim Parker, Vice President, DFA Australia Limited:
“Human beings have an astounding facility for self-deception when it comes to our own money. We tend to rationalize our own fears. So instead of just recognizing how we feel and reflecting on the thoughts that creates, we cut out the middle man and construct the façade of a logical-sounding argument over a vague feeling.
These arguments are often elaborate, short-term excuses that we use to justify behavior that runs counter to our own long-term interests. Here are ten of these excuses:
1. ” I JUST WANT TO WAIT TILL THINGS BECOME CLEARER.”
It’s understandable to feel unnerved by volatile markets. But waiting for volatility to “clear” before investing often results in missing the return that can accompany the risk.
2. ” I JUST CAN’T TAKE THE RISK ANYMORE.”
By focusing exclusively on the risk of losing money and paying a premium for safety, we can end up with insufficient funds for retirement. Avoiding risk can also mean missing an upside.
3. ” I WANT TO LIVE TODAY. TOMORROW CAN LOOK AFTER ITSELF.”
Often used to justify a reckless purchase, it’s not either-or. You can live today AND mind your savings. You just need to keep to your budget
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