Psychology of Wealth: Dealing With Uncertainty
By John Sage
I have spoken in the past about two specific reasons why people fail financially. They either have misconceptions about wealth and money,or they rely on intuition to make investment decisions.
Read more about these reasons here: https://johnsagesalesmarketing.blogspot.com/2018/09/psychology-of-wealth-how-and-why-do-so.html
Today we’re going to dig deeper into wrong ideas people have about money.
Irrational Ideas Lead to Wrong Decisions
This is an important point,so pay attention. Your ideas influence your reality. Therefore,if you have misguided ideas about money,it won’t benefit your investment decisions and the potential to build wealth.
Here are two ways a skewed mindset can create negative effects in the real world.
Overreaction to Changing Times
Changes in the market are a certainty. However,people have excessive reactions to these changes. When the markets are performing well,they believe that things will always be great and become overly optimistic about the future. Likewise,when the market is stagnating or in a recession,they develop a negative view of the future,believing it will never come right. Thinking this way blinds people to great opportunities that may be right in front oft them.
This iswhy every investor must be able to discern a real crisis or real boom from a regular change.
The Inability to Manage Uncertainty
Every successful investor has a methodology for dealing with uncertainty. They usually follow a set of principles to help them objectively weigh the risks and benefits of investment opportunities.
If you’re a responsible investor,you’ll have a long-term understanding of the market and you’ll have a set of accurate,reputable investment tools that help you assess risks objectively.
You can’t take the risk or uncertainty out of investing,but hopefully these tips have equipped you to handle them better. If you’d like to learn more investment tips,follow me on social media and subscribe to this blog!