Winning or losing it's all about your perspective

Winning or losing it's all about perspective

Are emotions stronger than logic?

Robert Kiyasaki in his book Rich Dad's cashflow quadrant talks about how our emotions are often stronger than our logic.  Most of us know that we need to exercise but often don't do it because we don't feel like it.  

A financial example is many advertisers will show a new product like a luxury car. Emotionally I want that car but logic says I know I can't afford it now.  So as if to anticipate this they say the magic words of reduced payments and words like 'luxury never became so affordable.' Also, you have already been sold the idea that you own the car. Where the mind goes the body follows also. (Roy H Williams 'Wizard of Ads') You get the idea.  At that point, our logic goes out of the window and we get into debt.  This shows our need for emotional intelligence and financial intelligence. It costs x,y,z but I don't need it, it is going to cost me a lot more by the time I have paid it off.   

We have a motorhome and it is great but sometimes you see other more expensive ones and think yes that layout would work better.  Well, straightaway I began thinking once I'm working in my new job we'll be able to afford it.  Hang on I thought I'm already spending money before I have earned it.  Thinking about it we don't need a new motorhome ours is brilliant to get lots of holidays and weekends away.  I then started thinking it doesn't matter what you have, (e.g. the biggest Mercedes in the car park) there will always be something that looks better and costs more.  

Another issue is the language we use about ourselves, this is so important. For example, I can't do this.  It won't work. I can't afford it.  These statements stop you from working out how you can afford it or make it work.  This does not mean agreeing with the salesperson and buying it anyway.  No, what  I am thinking about is life-changing things like acquiring assets. (Shares and so on - things that do not cost anything more than the initial purchase price)  Assets can also be a talent or hobby you have which can make an income.  An example might be creating paintings or writing books.  Once they have been produced you can sell them.  

My dream is still to be financially independent and be able to retire early.  Despite the pandemic, I still have that goal. The shares I purchased last year helped to keep us going when I had no work.   

I can't afford it -  well maybe not now but I still keep looking at other investment opportunities. These are tough times but there are so many opportunities.  Shares that were trading high and now sell for a fraction of the cost.   There is a risk and you have to know how to manage that risk. 

My other goal is to get fit and have a hot body.  I just realised I have been holding myself back as  I never feel like exercising it always seems too hard.  My comment to myself is go for it.  Start now and see where I end up.  That is emotional intelligence, not allowing our emotions to dictate our choices. 

Let's see what we can achieve today.