We have devoted our attention to a number of topics that we discuss in our Investment Ebook (Free). We have already talked about some personal traits for lasting success. In this article we will talk about the two D’s of investments: detachment and discipline.
What is money for?
Before we start investing we have to know what the money is for. Why do we want more money? What are our goals? It may seem like a rather unreasonable conversation but it is crucial to know what role money has in our lives. Unfortunately, many people use money as an end in themselves and not as a means to reach that end. Soon, they end up living for money, becoming slaves to work and consumerism.
We mentioned earlier that money serves a purpose. Financial security is enough for some. Know that they have money to live comfortably and carefree. Others want to have money to live on income. Still others want to use the money to invest in some small business. Each has its goals. And that’s good.
Money for investments must be money that we do not need. Obviously all the money is needed but we should not need that money to live. This is because if we are going to risk it, we must have the security of knowing that we will not have to sell our investments to make ends meet. To live is free to live free. It is living away from greed. It is being away from the need to make big money in a short time (I often remember the image of the “new rich”).
The investment world is not sympathetic to the lack of discipline of its participants. If you do not have discipline with great probability you will make mistakes that you could easily have avoided. It is not easy, because money brings with it a lot of emotion. Too much fear and too much greed. However, if we are humble we will realize that our abilities of divination are tiny. Therefore, we must create tools and mechanisms to control our decisions in times of stress.
It is true that living this way in investments will be uninteresting in the short term. This is because we are taking the whole emotion out of the process. However, as time goes on and the results emerge, we make a lot more money and see a few doors open. We increase our freedom. We can achieve other goals. Goals we thought were impossible to achieve.
Making money is good. Losing money is bad. But it sucks to lose money and not learn from mistakes. And that requires detachment and discipline