Why Inner Peace and Understanding is Important Before Investing
As is the norm for most investors, they like to obsess over a number of things regarding their investments such as sales growth, debt, and earnings accrued.
Being Introduced to the Teachings of Portnoy
However, author of The Geometry of Wealth: How to shape a life of money and meaning looks at it from a different perspective. He believes that the best investment tip starts by looking at the man in the mirror.
The point that Portnoy is trying to put across is that while the selection of an investment is important, the most important factor in ensuring success is by making the right choices when it comes to your money at the right time.
In an interview with Reuters, Portnoy advised that by comprehending your irrational impulses with money, you have the ability to direct your life towards a healthier, wealthier, happier you.
Knowing the Difference Between Being Wealthy and Being Rich
Additionally, he differentiated the terms ‘wealthy’ and ‘rich’. According to him, rich is a term that describes being in a state of having money, but always looking to get more. Wealthy, on the other hand, is a state of mind whereby you believe you have abundance and hence, can sustain a content and meaningful life.
Over the years, Portnoy has motivated thousands, and even devised a three-step process to what he believes is true wealth. In the process, he uses patterns as the main symbols. That is, a circle, a square, and a triangle. The circle represents one’s purpose, the square represents the priorities that one sets, and last but not least, the triangle represents an individual making the right decisions in life.
Strive to Have a Purposeful Life
Portnoy also deconstructs the ideology of having a meaningful life that is affordable. He believes that it is possible as long as one focuses on enjoying the experience rather than the material aspect of the situation.
Moreover, people normally just fantasize about money, however ,time is one of the most fantastic sources to have. It is what will leverage your life and mold it in the way that you would like it to be.
As a matter of fact, an individual’s self-awareness is more vital to getting the right investment results than comprehending how the market works.
The norm for most people would be to first determine the right avenue to invest in. In real sense, this is normally the end process. Firstly, one should take the time to understand their own behavior and what they are all about.
For many, they tend to buy high and sell low. Additionally, most people also dislike diversifying their portfolios and further focusing on the long-term. Which goes to show that behavior matters much more than what people believe, and portfolio construction is not as important as putting all your negative behaviors in check.
Planning Ahead Before Searching for Investments
That being said, one should always have a plan before beginning on any actual investments. Moreover, they should also have the pillars of risk management and diversification as part of their personality.
In simpler terms, you should be able to diversify your investments across a broad range of bonds, cash, stocks and markets.
One should not just go chasing after a singular market and expect to get excess returns.
One fine example is using target-date funds as a good way to ensure that the individual diversifies, as well as auto-enrollment programs that are ideal for self-discipline with retirement savers.
Getting to See the Bigger Picture of Portnoy’s Philosophy
Conclusively Portnoy would love his readers to understand the meaning of having enough. He wishes that individuals would work towards pushing to be better, smarter, and faster individuals in the investments that they undertake in.
Individuals should begin exercising a mantra of abundance before beginning to invest in markets. This not only enables them to have a broader perspective when it comes to selecting the kind of investments that they would like to have, but also to be able to appreciate the positive returns that they get from all the investments they make.
Additionally, life should not be about investments alone, but should be about building one’s individual soul and being enlightened in the process.
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