Trade The Journey

Trade The Journey

Discovering Your Money Perspective!

Everyone has a perspective. The shyest person you know is outgoing when comfortable. Their view about the dangers of uncertainty in the social environment no longer exists. An outgoing person can become shy in an unfamiliar environment. Their perspective of certainty has also changed. Our overall perspective remains the same, able to adjust to the surroundings over time.

A money perspective travels with us often unnoticed. Unknowingly most of us inherit our surrounding influences perspectives of money. Taught at a young age about the rules of money and how its earned affect us throughout our lives. For some money, it’s valued and the ultimate pleasure is in seeing it accumulate. For others, money isn’t necessarily valued nor is it recognized for esoteric powers. It simply exists.

Growing up, I seldom remember positive conversations centered around money. Neither its inherent ability to multiply if allowed to nor the fragility of its commitment if not respected. Instead, the topic was often avoided and when the subject did arise it pertained to the problem, not the money. Unless money was strained at the moment. I can honestly say it was a money neutral household.

The power of money as a resource, a tool to build vast wealth was not apart of the perspective. Although it was accepted that some wealth could be aspired to through traditional routes. I never questioned this route because everyone seemed to take this route. Everyone succeeded in taking this route.

Work hard, hard enough to be promoted. Pay your bills on time and enjoy life when you can. Save and contribute to your retirement. When you retire, if done right, you’ll be able to. Times are changing.

To be honest, I had no perspective on money. I didn’t realize that you needed a perspective on money. If I only knew that for money to be resourceful it must be seen as a resource.

Your perspective of money must be one that you are conscious of. In my opinion, the more your money perspective complements your personality the better. This way your money perspective will be consistently reinforced through your natural thoughts and actions.

A perspective doesn’t change the actual situation, it only changes how you view the situation.

It took me a while to understand my money perspective. Personally, I like the sense of adventure. Each month I spent more than I earned. Whether conscious of the reason why or not, I spent without regard for the future.

When I begin to see why I spent more than I needed, I decided to change my perspective on it. Using the same strategy, I created a situation in which I had an amount in my checking account I was comfortable with. It was just enough for me to experience a sort of adventure that was somewhat uncertain. So I increased the automatic deposits into my investment and savings accounts weekly.

This reminds me of synthetic option positions. Without diving into the details, you create a situation in which an asset (Numerous options contracts) behaves like another asset (Stock) for a fraction of the price. You’re mimicking the situation with its upside (Chances of success) while incurring less risk. For me, saving doesn’t always equal a sense of adventure but living on the edge does.

But I know that the future is impartial to my perspective. So I need to find an angle that complements my sense of adventure yet does not destroy my future.

(This contradicts my previous post of having enough in my checking account to weather storms without using your savings account. What gives? My knowledge of financial forecasting in regards to my finances. The present shall resemble the past but not always. Remember its an amount I’m comfortable with. Its just enough.)

Your personality is undoubtedly different from mine, and perhaps you don’t seek adventure. Maybe you enjoy saving but have a hard time investing profitably. Could it be that a sensible attitude towards money is not conducive to substantial returns?

At risk could be the money you worked hard to earn and your not comfortable risking it. Perhaps you could find an advisor that specializes in investments that are a bit riskier for your taste. Contribute a small amount towards the account that doesn’t affect your peace mind. If you’re competent in analyzing investments, you could select the investments.

Leaving the investment in the hands of a competent advisor following a strategy carefully selected could work better. Believe it or not, your natural temperament about risks always shines through.

The point is that we need our money perspective to work for us in ways we may not be adept in using. Shoring up the weaknesses that may be hard to overcome in our perspectives could help us prepare for the future.

Self-Discovery can reap serious rewards if you’re interested in working at the discovery.

My sense of adventure complements my understanding that saving and investing steadily brings about a financial future.

Although it may seem that finance because of its complex terminology and strategies can be challenging to implement. Not so! The most challenging aspect of finance to understand and implement is self-discipline. It’s at the heart of both personal finance and investment success.

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