The word satisfaction describes a feeling of fulfillment or contentment. Its meaning is relative and often dependent on personal definitions of success as applied to specific areas of life.
The first step to evaluating your own life satisfaction is to think about what is most important to you. Be as candid as you can with yourself and try to disregard “messages” – from society, parents, partners, peers, or colleagues – that tell you what your priorities should be. This is a time to listen to your own heart. What do YOU value most and what do YOU want to achieve in each facet of life? Whatever you identify should then become the basis for establishing your life goals. (more…)
There’s a reason that investors tend to only hear about “looming” market doom or “imminent” market growth. While many news outlets have incentive to draw viewer attention with wildly bullish or bearish predictions, these sensationalized views may be a distraction to a sound investment approach. When tempted to make a radical change to your investment portfolio based on these headlines, it is important to recall some basic fundamentals to keep your plan on track.
Drown out the noise. Market movements are notoriously difficult to predict. The media outlets that scream the loudest are not always the most accurate. The fallout from attempting to time the market in response to one of these predictions can be dangerous to your portfolio. (more…)
In your financial life, as in all other areas of life, it is important to nurture your resilience—your ability to recover from loss, disappointment, and difficult circumstances.
From a practical perspective, financial resilience involves laying a foundation of economic protection. From an emotional perspective, financial resilience involves increasing your confidence in your ability to prepare for and deal with life transitions and financial setbacks. (more…)
What would you do if your investments lost 10% in a single day? A) Add more money to my account. B) Hold steady with what I’ve got. C) Yank my money; I wouldn’t be able to stand any more losses.
If investors buy the right investments but sell them at the wrong time because they can’t handle the price fluctuations, they may have been better off avoiding those investments in the first place. Most investors are poor judges of their own risk tolerance, feeling more risk-resilient in up markets and more risk-averse after market losses. However, focusing on an investor’s response to short-term losses inappropriately confuses risk and volatility. Understanding the difference between the two and focusing on the former is a potential way to make sure you reach your financial goals. (more…)
Do you feel “in charge” of your financial life? Or, do you feel like you are being swept along by a set of personal and financial circumstances that are beyond your control? Do you take responsibility for making your own financial decisions, or do you acquiesce to the plans and opinions of others? Does fear, denial, or complacency keep you from taking a proactive approach in your money matters?
The person who should be in charge of your financial life is YOU! The degree of power you feel you have in shaping your financial life is both objective and subjective in nature, and is determined, in part, by your sense of locus of control. (more…)