The “dirty dozen”, or, twelve fundamental truths of investing and managing money, courtesy John Hancock Insurance. Actually, they aren’t “dirty” at all…
1. Over the long term, stocks have had greater total returns than bonds.
2. Over the long term, bonds have had greater total returns than money market funds.
3. On average, stocks are much riskier than bonds.
4. On average, bonds are much riskier than money market funds.
5. You will make investments that go down immediately after you buy.
6. You will sell investments that continue to go up after you are out.
7. You will hold some investments too long.
8. The value of opportunities missed will dramatically exceed those in which you participate.
9. Someone, or some group of people, will always do better than you.
10. You don’t pay a financial adviser for information — you are paying for knowledge, wisdom and personal guidance.
11. Accept uncertainty. No one knows where the market will be next week, next month or next year.
12. Money can only be made in the future — it’s impossible to invest in past returns.
Just as important, consider your own, “personal money truths”. These are the guidelines you hold closely because they represent challenges in your own life. For example: “It is easy for me to spend money I don’t have. Therefore, it’s important I always buy when I have the cash in hand.” These little matras can go a long way toward changing your behavior.
Speaking of behavior, did you see yesterday’s fact that in a recent survey, seventy-five percent (75%) of Geezeo users who actively use our budgeting tools save $1,200/year or more. Cool! Get your own set here!
Related:
hypnotize yourself with money affirmations (pt. 1)
3 simple directions for money-making affirmations (pt. 2)
Vanishing Money: Your PMA Stock
