Multi-Unit Franchisee Magazine Issue I, 2014 | Page 89
InvestmentInsights
By Carol M. Schleif
Your Own Worst Enemy?
there is enough left over each week to
save and invest.
4) Focusing more on what you can’t
control than on what you can. The media is always trying to predict the market’s
next move as if an accurate prognostication
nvesting wisely does not come natu- near-term time periods. When looking would yield an investable event. Even if you
rally to most of us. Many of the skills out a year or more, one day seems as far can figure out what the economy is going
that support ultimate financial man- away and fuzzy to comprehend as anoth- to do, you can’t know how individual stock
agement success run counter to how er. To combat this natural tendency, you prices or even broad sectors will react to
our natural wiring prompts us to behave. must consciously shift your sights from events. Falling into the fantasy that you
Sound long-term investment decisions how compelling that next cup of coffee can accurately predict market movements
often require the ability to make choices is and convert your thinking into: “If I can lead you toward trying to “time” your
that differ from near-term “prevailing want to have $1,000 saved in the next 12 entry into or out of specific asset classes.
wisdom.” But we are social creatures, most months, I need to deposit $2.75 per day, While you can’t control performance, you
starting today.”
comfortable when we fit in.
can have quite a bit of control over your
We crave predictability, but the mar2) Ignoring the implications of com- costs, taxes, asset allocation, and the frekets are unpredictable and random. We pounding. The importance of starting to quency that you readjust, reassess, or reinfer short-term “patterns” reinforced by save as soon as possible cannot be overempha- balance your asset mix. Spend your time
what we just read online, but don’t rec- sized. While compounding may seem dull getting a handle on those factors and you
ognize long-term sea changes that evolve in the beginning, once the balance starts to won’t have time to fret about anything else!
with subtle nuances. We love to share grow, the bottom-line advantages can be
5) Mistaking clubhouse banter for
stories, but often find it challenging to startlin