Don’t overindulge in money matters
Yes, I warmly promote financial education; I am honestly excited about the positive impact of well-crafted investments and financial decisions on individuals and families well-being. I genuinely think we all need to improve our financial acumen and be on top of our financial future.
However, it is common to invest more time planning our holidays than planning our financial future. The financial author JJ Collins honestly reported his daughter’s opinion: “Dad, I know money is important. I just don’t want to spend my life thinking about it”.
Nothing wrong with that. Indeed, money management should take limited energy and time. I trust you have better things in life than spending quality time dealing with money matters: you might have a profession you like, a family or friends you want to spend more time with, hobbies and sports you love, places you want to visit, books and articles you want to read. As such, I share a few underlying assumptions to my approach:
- Money is a mean to an end; It is just a tool that requires some technical and soft skills to be mastered. Few hours a month will do (read a few articles, monitor the portfolio and net worth, adjust it annually, etc.). You can be on top of things as a “weekend Investor”.
- Money is a proxy for opportunities and wider options in life. Your focus is on the adventurous journey through the opportunities you find or create, thanks to your solid financial outlook.
- Money management and investing are not games to be entertained with; it is not an opportunity to challenge yourself by beating the market. It would be best if you looked elsewhere for excitement.
- I trust you are not like Warren Buffett; you might want to have a life outside Financial Statements and Board of Directors meetings. Unless it is your full-time profession, cap the time and energy on financial matters; make sure to make your F.U. money, be on track with your financial plan and align your lifestyle to your financial strategy (and vice-versa).
Sweat Your Assets…and enjoy your journey!