Welcome to week 3 of the Challenge – where we’ll work through 5 steps to invest. Before you know it you will have just done it!
As we saw in Day 16 there’s a lot of psychology behind investing decisions and behaviour. Understanding markets themselves, the impact of herd mentality on a stock rise or fall, but also knowing about fear, greed and your attitude to risk – help you make smarter investment choices.
Recent advances in neuroscience, such as brain plasticity, the benefits of mindfulness and the trap of multitasking give you tools to sharpen your brain and investing skills. You’ll find the latest research we find on BiG and on our Facebook page. Eg check out Todd Sampson – can modern science turn your brain into a super brain? In his series Redesign My Brain see brain training put to test – to the extreme!
A life event – or just one book – can get you started
Investing psychology is often behind why people don’t get around to investing – unless you experience a major life event, such as:
- a relationship breakdown
- birth of a child
- serious illness
- new job
If you don’t have a good enough reason or motivator to start investing – you’re unlikely to.
12 years ago my father was very ill. About that time, I visited a financial adviser to get investment advice. I was interested in property investing and he suggested I buy Rich Dad Poor Dad (Robert Kiyosaki). He didn’t lend me his copy as he thought I’d value it more if I spent my own $ on it! After reading it over the weekend, that Monday I resigned from my position in training that I’d been doing for over 5 years, and started investing.
If you want financial freedom build alternative sources of income, don’t dependent solely on your own labour.
I wouldn’t say Rich Dad Poor Dad is the best technical real estate investing book around. And Kiyosaki is quite polarising – people either love him, or … But what it has done for millions of would be investors worldwide, is to show that relying solely on income from your own work (a ‘j.o.b.’) is akin to a mouse in an exercise wheel. An endless pursuit, with little hope of escape! No matter whether you work in a profession or not.
A great lesson to learn because the sooner you start money management and investing – the better. Especially when you understand the importance of compound growth.
Reading the book and in the context of my dad’s imminent passing, created:
- a Eureka, ‘ah ha’, light bulb, epiphany – moment, and
- a Richard Branson type ‘Screw it just do it’, ‘smell the roses’, I don’t give a damn – moment
How help with success and motivation may help you
Just one book
Noel Whittaker writes in his book More Money “An Attitude of Success: The Value of One Book
The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind.
William James” philosopher and psychologist
You might not be into success, self-help and motivational books, products and services around. Find some in BiG Book #1 Wealth Creation.
You may prefer to be independent and not need motivation to achieve your goals. An experience, a moment or two, or life event, might be enough to get you started – great!
But you may be one of the many who do need psychological help to invest!
You might get motivated or inspired by the Analysts and Commentators or Gurus in BiG. Our post will help you avoid mistakes if you do How to get ready, aim – and fire your investing. Rule #1 don’t do crazy!.
Or, you might turn to self-help gurus. Many of the books, authors and seminar presenters on business and investing success are from the USA. Often with a background in sales, marketing or advertising – you might be sceptical and think they’re slick, snake oil salesmen! Many of them are masters of appealing to your emotional needs and wants, with rags to riches stories and headline grabbing titles that appeal to insecurities, such as:
- How to get a millionaire mindset
- The secrets to …
- What the Rich Invest In, That The Poor and Middle Class Do Not
You’ll also find a lot of internet and specialist sites, such as money and investing for women eg One of Many 7 Signs Your Mindset for Money Could Use an Upgrade
The ‘its easy trap’
As you seek motivation for investing beware of short cuts and quick fixes. And, as Mark Bouris suggests to achieve success in your working life:
what it takes is an attitude of hard work, commitment and purpose
the same applies to investing generally.
So, time to get your brain, mindset and emotions in order. Find a big enough reason why you must invest and change what isn’t working in your life – whatever it takes for you. And get ready for tomorrow.
Love to get your feedback – email or leave a comment.
I’d also be delighted if you find BiG and my work helpful, and share it with friends, family and others who want to build on their investments. (Just click on the “Subscribe” green button to the right and be part of the Challenge and receive our updates – free!)
All the very best with your investing!
the Bucket List Investing Chick
Day 23 BiG 30Day Investing Challenge| Time to invest – just do it! Step 2 Choose your investing team – or do it yourself investing.
Day 24 BiG 30Day Investing Challenge| Time to invest – just do it! Step 3 Be a smarter, more intelligent investor.
Day 25 BiG 30Day Investing Challenge| Time to invest – just do it! Step 4 Build your own investing plan and strategy.
Day 26 BiG 30Day Investing Challenge| Time to invest – just do it! Step 5 Time to shop – for your investments!
Where we’ve been – 30 Day Challenge Blog overview:
Day 5 – Who Can You Turn to for Investing Help? People and ‘Players’ in the Investment Industry (Day 7-8 W/E)
Day 12 – Part 4 Less Regulated Advisers – Analysts, Commentators and Gurus (Day 13-14 W/E)
Day 19 – Who are the best investment gurus? Part 4| Choose a Guru (Day 20-21 W/E)