Insights Blog
Embracing the Spectrum of Emotions
Jun 19, 2023 // Adam Bruderly
Investing can be an emotional roller coaster, with the excitement of portfolio growth followed by the panic of market downturns. This emotional ride is rooted in the experience of loss aversion, a psychological principle suggesting the pain felt from financial loss is twice as potent as the pleasure experienced from a similar gain. However, it’s crucial to recognize that allowing our emotions to guide our investment decisions can lead to irrational choices.
Just as stepping out of your comfort zone can be challenging in other areas of life, such as participating in a triathlon or speaking publicly, it can also be difficult in investing. This discomfort can lead to a flywheel of negative self-talk and impulsive decision-making, which could potentially undermine your financial health.
At Journey, we provide the foundation and tools to help you build a truly resilient investment plan. By learning to manage and embrace discomfort on top of building your plan could allow you to enhance your investment decisions, paving the way for potential achievement of your personal and professional financial objectives.
Get comfortable with being uncomfortable…
What is Wealth?
According to Investopedia “wealth is measured by taking the value of all the assets of worth owned by a person. This is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources.”
How Many Summers?
After my first son was born, I began to think about what the next phase of our lives looked like. We went from two busy professionals who could hop on a plane for a weekend trip, grab dinner, or chase endless weekend adventures to first time parents. We were 2,000 miles away from family trying to plan the one or two trips a year that we could see them which led me to ask this question, how many summers do we have left?
The Power of Time
Our humans are brains are instinctively wired to prioritize immediate needs and wants, such as quenching hunger, ensuring safety, or yielding to the allure of instant gratification. This is a survival mechanism that has evolved over tens of thousands of years to help us respond to threats, opportunities, and ultimate survival. However, this tendency to emphasize the short term can be counterproductive and have a detrimental effect when it comes to planning and our financial success.