5 Awesome Sketches
These Sketches are from Carl Richards book “The Behavior Gap” – simple ways to stop doing dumb things with money. This is by far the most interesting personal finance book that I have read.
There is so much we don’t control in life, but the things we can control and the things that actually matter deserve our full attention. Unfortunately, we often see people doing the exact opposite.
They get distracted by things they can’t control (like the stock market) and waste time on things that don’t matter (like finding the next Apple). The result? Disappointment and frustration.
2. Cycle of Fear & Greed
3. Investment Return Vs INVESTOR Return
Dalbar (US) published annual data about average investor and investment returns. But something odd kept happening each year. The numbers didn’t match.
The average investment return was bigger than the average investor return. In other words, investors were leaving money on the table. What was happening? Chasing returns, timing the market, best fund syndrome, fear & greed…
4. The ONE Thing – Planning
Planning process can make everything else Easier or Unnecessary in Financial Life….
5. Between You & The BIG Mistake
It doesn’t matter our background or experience, when it comes to our money, it’s incredible difficult to remain objective. Three things advisor can do for us:
- Help us clarify our goals
- Remind us of our goals when we get emotional
- Be the thing between us and the Big Mistake