Cryptocurrency. People either love it or hate it. They either understand it or remain ignorant. I'm a big fan but have invested time in understanding it. Similarly, there is a tonne of publicly traded companies that make big promises of high growth and big gains for investors.
Although all so alluring, there is a good reason to totally boycott these.
I was talking to someone this week who, after reading a solid book on finance, had become painfully aware that their ignorance around money and investing was a choice. They'd had an "Aha!" moment. They felt that they had no excuse for not knowing more about finance, and for most of their life up until now, they'd been in a position of ignorance, social conditioning (doing what everyone else does), and investing in high-risk non-income assets. They felt like their investing decisions, in this case, cryptocurrency, had been more akin to gambling, although they wouldn’t say they were a gambler. They were hoping to hit the jackpot but hadn't. They realized they need to change their strategy to reach their financial goals.
I have another friend who started investing in certain publicly traded companies because their peers were doing it. Keep in mind these peers had money to throw around. My friend went from a very risk-averse individual to the total opposite. They bought, let emotions kick in, and sold out of fear and greed. I haven't checked in with how it all went, but I'm certain in the current market, they lost money. They fell into the same trap as the first example above.
All too often, inexperienced individuals jump on whatever their friends or the internet claim to be hot right now. Most of the time, the ship has already sailed on the gains if there were any. This is simply gambling.
Both stories are your typical individual nowadays. If this is you, don't dwell on the past, but look to what you can change in the future. Many of these individuals need to have the same "Aha!" moment as my first friend did. Most individuals want to set themselves up financially to retire comfortably yet most have no idea how to get there and rely on hope rather than wisdom.
We are all very unlikely to reach our financial goals if we throw money at investments a friend or someone on the internet recommends. There are methods out there to reach our financial goals in slower, less risky, and in proven ways, so I encourage you to research, read and listen.
One day you may have excess cash and throwing some money at a high-risk investment that your friend is pumping is fine. It won't interrupt your plan to retire or throw your financial stability under the bus. This has been my approach to both cryptocurrency and stocks that friends rave about. Sometimes I dabble and throw a little money at things to see what happens knowing full well it could go to zero.
My advice is to come up with a financial dream, then a goal and plan to reach it, and invest time in your knowledge and understanding of managing finances.
Although all so alluring, there is a good reason to totally boycott these.
I was talking to someone this week who, after reading a solid book on finance, had become painfully aware that their ignorance around money and investing was a choice. They'd had an "Aha!" moment. They felt that they had no excuse for not knowing more about finance, and for most of their life up until now, they'd been in a position of ignorance, social conditioning (doing what everyone else does), and investing in high-risk non-income assets. They felt like their investing decisions, in this case, cryptocurrency, had been more akin to gambling, although they wouldn’t say they were a gambler. They were hoping to hit the jackpot but hadn't. They realized they need to change their strategy to reach their financial goals.
I have another friend who started investing in certain publicly traded companies because their peers were doing it. Keep in mind these peers had money to throw around. My friend went from a very risk-averse individual to the total opposite. They bought, let emotions kick in, and sold out of fear and greed. I haven't checked in with how it all went, but I'm certain in the current market, they lost money. They fell into the same trap as the first example above.
All too often, inexperienced individuals jump on whatever their friends or the internet claim to be hot right now. Most of the time, the ship has already sailed on the gains if there were any. This is simply gambling.
Both stories are your typical individual nowadays. If this is you, don't dwell on the past, but look to what you can change in the future. Many of these individuals need to have the same "Aha!" moment as my first friend did. Most individuals want to set themselves up financially to retire comfortably yet most have no idea how to get there and rely on hope rather than wisdom.
We are all very unlikely to reach our financial goals if we throw money at investments a friend or someone on the internet recommends. There are methods out there to reach our financial goals in slower, less risky, and in proven ways, so I encourage you to research, read and listen.
One day you may have excess cash and throwing some money at a high-risk investment that your friend is pumping is fine. It won't interrupt your plan to retire or throw your financial stability under the bus. This has been my approach to both cryptocurrency and stocks that friends rave about. Sometimes I dabble and throw a little money at things to see what happens knowing full well it could go to zero.
My advice is to come up with a financial dream, then a goal and plan to reach it, and invest time in your knowledge and understanding of managing finances.
-Ben