Quote:
Originally Posted by sik68
Greg!
I am now on my 4th audiobook on $Money$, and the Rich Dad/Poor Dad guy reminds me so much of you and this thread. It's like having GW in this thread and GW in my ear for an hour each day...is that a good thing? Haha
Here are the points from this thread and the book that I'm really eating up right now:
1) Learn to Make Decisions With Rationality As Well As Emotions - All of us make decisions emotionally, but the smartest people recognize and harness their emotions and learn to use rationality to make decisions. (I have started to do this and it changes your whole perspective on life, money, relationships, etc).
2) Don't Work For Money - Working for money keeps you desperate, and unable to think and be creative. Work for knowledge that experience brings.
3) Let Your Money Work For You - THINK and act on ways you can generate cash flow outside of the 'rat race'
4) Don't Play It Safe, Play It Smart - Most of us 'play it safe' and fear taking a loss. Making money requires not avoiding risk, but staying focused, and managing risk.
I KNOW that's not all, but my dimmer switch is sliding up. 
GW I'm still doing more research on your post about housing prices vs. rates and I see what you're saying...in reality it's more complex than just an inverse relationship. I'll post about this soon too.
Thanks,
Steven |
I could say "I feel sorry for you" -- but then I'd be lying...
I like the Rational/Emotional discussion with regards to investing. I've said it many times here -- that you MUST invest in things you feel good about... so that's "emotional". I've also said - invest in things you understand -- and that's "rational".
So when I hear a news story - let's say it's about "rising rates".... and that triggers -- "what do I have that is interest rate sensitive"? So the emotional side says "Holy crap! I've got a lot invested in that space!" and I jump to check.... THEN I try to suppress the emotional side -- search around -- read other opinions - gather some data - I go back to myself and discuss "WHY I BOUGHT THIS"... and "Where does this fit in my portfolio" etc. IF -- IF -- I decide to pull the trigger on either a buy or sale ---- I do so lightly. I may sell a 1/3rd -- or a half. I would do the same on a buy. This gives you time to settle down - think - and take the emotion out of it.