Hi everybody! Welcome to the 12th edition of my newsletter "Free As A Bird".
The name of the newsletter represents us - we want to be free.
Free to choose how we spend our lives.
Principles For Success In Life
30 minutes of life-wisdom.
You will not regret watching this.
At least, I didn’t.
Principles for success:
1. The call to adventure: You need to think for yourself about what is true
-Decide what to do
-Have the courage to do it
2. Embrace reality and deal with it
-Truth is the essential foundation for producing good outcomes
-Dream + Reality + Determination = Success
-Pain + Reflection = Progress
3. Five step process
-Know your goals and run after them
-Encounter the problems
-Diagnosis of the problem
-Design a solution
4. The Abyss: Embrace the reality, there is always a way you didn't see before
5. Everything is a machine: See the cause-effect relationships that govern them and develop better principles
-Risk and Reward go together
-Know risk and reward for a balanced life
6. Ego and Blind spot barriers
-Acknowledge your weakness objectively
-The tragedy is a terrible outcome arising from a person's fatal flaw if fixed will result in a wonderful outcome
7. Be radically open minded
-Replace being the joy of proven right with the joy of learning the truth.
-Be open minded to other views
-Surround yourself with thoughtful people
8. Struggle Well: Struggle toward personal evolution with others is a reward
Have the courage to struggle and evolve well to make your life as great as it can be.
FREE E-Book: Financial Independence Goal Setting Workbook
I made this 16-pages FREE workbook with the steps I’ve taken on my path to Financial Independence.
It’s 8 lessons:
3) Ideal Lifestyle
5) Your FI Goal
8) Resources worth having
This Is How You Can Become A Multi-Millionaire
Check out my interview below with John.
He reveals how he he became a multi-millionaire.
The best part: It’s so easy that anyone could do it!
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Articles I Read This Week That Got Me Thinking
The Investor’s High by Brendan Mullooly (3 min read)
As Jason Zweig shared in Your Money and Your Brain:
“The neural activity of someone whose investments are making money is indistinguishable from that of someone who is high on cocaine or morphine.”
The investor’s high, indeed.
The problem is that while confidence tends to grow commensurately with portfolio balances, our actual tolerance for risk does not respond in kind.
While markets rise, this is generally a non-issue.
After all, what’s risky about investments that are growing?
Volatility to the upside is not what most investors lose sleep over, so adding to what’s working and forsaking what isn’t seems safe and reasonable.
It’s only when markets fall that we realize we’ve taken on too much.
Our perception of risk returns to reality, but at that point, it’s too late.
Making adjustments after the fact is not a winning approach.
The best advice I can offer is to make any changes gradually, and question whether they’re truly necessary before acting.
Having a default setting of, “doing nothing”, is far from the worst thing in the world.
50 Reasons Why We Don’t Invest for the Long-Term by Behavioural Investment
Investment is a long-term endeavour designed to meet our long-term financial objectives, so why do we spend so much of our time obsessing about the short-term and almost inevitably taking decisions that make us worse off?
Well, here are 8 reasons to start with:
1: Because it is boring.
2: Because markets are random and it’s difficult to accept.
3: Because there is always something / somebody performing better.
4: Because we watch financial news.
5: Because we think we can time markets.
6: Because even good long-term investment decisions can have disappointing outcomes.
7: Because the fund we manage charges performance fees.
8: Because short-term losses are painful.
What is your reason to not invest for the long-term?
LESS IS MORE when it comes to investing.
Less effort. Fewer transactions.
Lower costs. Less worry.
Lower taxes. Less ego.
We’re wired to try hard. To do well. Especially if you’ve had some success in your life, and built up some money to invest, you probably got there by working harder than others.
Problem is, the same rule doesn’t apply to investing.
There is no A for effort. But there is an F for frenetic.
According to PortfolioVisualizer.com, your money would have compounded at about 9% a year, in line with the historical average for U.S. stocks.
Boring you say?
What would you say to $717,000?
I thought so.
No more daily or up-to-the-minute portfolio monitoring.
No more expensive financial advisors or newsletter authors who say they can beat the market.
No more mornings, evenings and even work hours glued to CNBC.
The good news is, there’s a simple way.
You can grow wealth by matching the market—with index funds—instead of vainly trying to beat it.
Quote that got me thinking
How often haye you tried to Google a problem and read others suggestions and advice before you actually thinked about it yourself?
This got me thinking, because I often seek advice from others first, instead of going deep down in myself and try to figure it out first.
Things can be a lot easier than they first seems to be.
Have questions, comments or suggestions? I would love to help you.
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Feel free to reach out directly @Route2FI on Twitter or email me at post@route2FI.com
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Thanks for reading,
Route 2 FI