We all believe we can beat the market and avoid the sacrifices. Those sacrifices include saving enough and foregoing unnecessary purchases.

We ask ourselves ‘why should I not have that boat or snowmobile or motorcycle or whatever everyone else has?’

Sometimes we have to tell ourselves ‘we shouldn’t buy stuff we don’t need with money we don’t have to impress people we don’t know’.

Of course, there are times when we should indulge but try not to make a practice of it.

 In order to pay for our unnecessary purchases, we forego saving for our future. Then we feel we must speculate to catch up. We look for predictions that will make us wealthy overnight.

There are circumstances where speculating is ok. But for most of us speculating and gambling will lead to disappointing results.

All of us have said, ‘But it’s different this time’ ….’This Time This Expert is Right for Sure’……’I’m due’…..

A necessary lie is a rationalization to justify self-destructive behavior. Some additional examples:

• I will start my diet tomorrow…..so I will pig out today.
• I’ll just gamble until I get even…..so I will let it ride.
• This time I really do know what the market is going to do….
  so it’s all right to speculate with my money.

Remember f you do not know two numbers you are speculating with your money. They are expected return and expected volatility (risk).

That means we must have a prudent process and remain disciplined. In most cases this will require the assistance of an investor coach/fiduciary adviser.

To succeed long term in reaching your financial goals you must own equities….globally diversify….rebalance.