Updated August 2020
How do advances in neuroscience, such as brain plasticity, the benefits of mindfulness and warnings about multitasking, help sharpen your brain and develop your financial skills?
Check out some of the latest research in BiG and my Facebook page. Eg check out Todd Sampson – can modern science turn your brain into a super brain? In his series Redesign My Brain Todd tests brain training – to the extreme.
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 recognising fear, greed and your attitude to risk, to help you make smarter investment choices.
Welcome to week 3 of the Challenge – for the next few days where we’ll work through 5 steps to invest. Before you know it you will have just done it.
A life event, or just one comment or book – can get you started
Why don’t people get around to investing? Psychologists and we know, that we put off decisions until confronted by major life events , 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 getting your finances in better shape and maybe investing – you’re unlikely to.
Over a decade 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 Robert Kiyosaki’s Rich Dad Poor Dad. He didn’t lend me his copy as he thought I’d value it more spending my own money on it. After reading it over the weekend, that Monday I resigned from my long term training job and started investing.
If you want financial freedom, build alternative sources of income, don’t depend solely on your own labour.
I wouldn’t say Rich Dad Poor Dad is the best technical real estate investing book around. And Kiyosaki’s pretty polarising – you either love him, or hate him. 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 power of compound interest and growth.
After reading the book and in the context of my dad’s imminent passing, I had:
- 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
Just one book
Noel Whittaker quotes in 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
Are you one of the many who needs psychology to help get you started on life and investing changes?
Maybe self-help gurus do it for you. Many of the books, authors and seminar presenters on business and investing success are from the USA. Often they’re sales and marketing experts, the skeptics among us might see them as slick, snake oil sales people! Many of them are masters of appealing to your emotional needs and wants, with rags to riches stories and headline grabbing titles and promises 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 don’t and can’t
Some of the Analysts and Commentators or Gurus in BiG might get you
inspired or motivated.
To avoid mistakes check out How to get ready, aim – and fire your investing. Rule #1 don’t do crazy!.
If you aren’t into that ‘stuff’ and don’t need motivating to achieve your goals. Good luck to you. An experience, a moment or two, or life event, might be enough to get you started – great,
You’ll also find a lot of useful 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’re trying to get investing motivation or mojo, beware of short cuts and quick fixes.
to achieve success in your working life
what it takes is an attitude of hard work, commitment and purposeMark Bouris
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’s Challenge.
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. Subscribe to keep up with the latest BiG news
All the very best with your investing!
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 2 – Where the Bloody Hell Are You?! Assessing your current financial situation
Day 3 – The Lazy Investor’s Way to Set Goals
Day 4 – Spoilt for Choice! The Many Types of Investments and Strategies Available to You – the Investor!
Day 5 – Who Can You Turn to for Investing Help? People and ‘Players’ in the Investment Industry (Day 7-8 Relax and review)
Day 9 – How to choose a financial adviser and advice you can trust. It’s all about the faith! Part 1 Financial planners
Day 10 – Part 2 Rate the Raters! Investing Rating sites, Top 10 …, Best …
Day 11 – Part 3 The Investing Information Tsunami! Media, Books, Magazines, Websites, Blogs, Podcasts, Webinars…
Day 12 – Part 4 Less Regulated Advisers – Analysts, Commentators and Gurus (Day 13-14 Relax and review)
Day 15 – Part 4 Less Regulated Advisers … Gurus
Day 16 BiG 30Day Investing Challenge| Who are the best investment gurus? Part 1| Avoid some Gurus
Day 17 – Who are the best investment gurus? Part 2| Find a Guru
Day 18 – Who are the best investment gurus? Part 3| Rate a Guru
Day 19 – Who are the best investment gurus? Part 4| Choose a Guru (Day 20-21 Relax and review)