Tackle Today: What a bad family vacation has taught me about investing | Tackle Trading
≈ L’extraordinaire voyage. ≈
Mid August I’ve decided to follow my (really small) family on a short trip. The last time I took a week off was January 2014.
It didn’t work, as you can imagine. Four days later I was back — exhausted and poorer — while they kept on traveling. At least I drank good beer, ate good cheese, gained a few extra pounds and learned a lesson on investing.
Have you noticed how much time people spend planning their next family adventure? It can take months. A 1-week trip in August begins in January. People want to make it cost-efficient, which means, the most fun they can get for every dollar spent. The infamous budget: flights, hotels, pet shelter, passports, visas, health insurance, clothes, medications, fun for the kids, food and alcohol for the grown-ups. Date and time for everything. Touristic spots sitting on a spreadsheet together with numbers. Mobile apps for every situation. It’s almost like people have graduated in planning excursions. Ph.D. and all.
Now, try to ask these people about their money. Net worth. Retirement. Legacy? Investments? … Anyone?
Nothing.
When it comes to money the approach is completely different. That is when a profusion of bad mindsets jump into the scene: shortcuts, ‘get rich quick’, hot tips, ‘top 10’ whatever, ‘tomorrow I’ll take a look’ etc.
Wrong priorities? Instant gratification? God knows. The fix is easy, though:
Replace ‘Fun’ for ‘Returns’.
‘Dollar spent’ for ‘Risk’.
There you go. Instead of ‘Vacation’, you have ‘Investing’. As traders, we are always seeking the best return we can possibly get for a said amount of risk.
We’ve got to teach these people that money is like a jealous lover. It seeks attention. If you don’t give it enough, it will leave you. Or at least it won’t be there when you need it.
Chart of the Day: Five months of peace
Me before the family vacation.
Financial freedom is a journey
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Originally published at https://tackletrading.com on September 5, 2019.
