I have a question for you.
Now, this will work best if you grab a piece of paper, and write out your answer.
Here’s the question:
Why is your money invested the way it is?
Before you go on, write down your answer on that paper.
I’ve had a blast with this question over the last few years.
I’ve asked it on planes and trains, in coffee shops, and over lunch, and the answers I get are crazy.
Things like:
“There was an article in the New York Times about it.”
Or
“My buddy told me about it.”
Or
“They talked about this investment on The Financial Pornography Network. Oops, I mean CNBC.”
But none of these answers are correct. There is — and indeed only ever will be — one right answer to the question.
“My money is invested in a way that gives me the greatest chance of meeting my goals.”
Of course, the hard part is pausing long enough in this crazy world to even hazard a guess at what your goals are in the future.
Note: I know, I know, ain’t nobody got time for that!
But I’d submit that without that, you can’t invest at all (but you can speculate).
Without a diagnosis, you can’t get a prescription.
There are other, fun “why” money questions:
- Why do you spend the way you do?
- Why are you saving as much as you are?
- Why do you think you need X before you do Y?
These are all useful questions, and they all have one thing in common:
Note: The answer that matters is yours!
Not your buddy’s.
Not what you see on Insta-Twitter-Book.
Just yours!
So, back to your piece of paper.
I suggest keeping it around to act like an annoying little reminder to get clear and stay clear, about the reason you’re doing what you’re doing with your money.
