Simplify Your Behaviour

Everything you need to KNOW

1. Behaviour is EVERYTHING
2. Behaviour is hard-wired
3. Behaviour can be prepared for

Behaviours can be derailed easily, by all sorts of factors:

• tiredness
• anger/depression
• alcohol
• apathy – lack of intention
• boredom – looking for excitement
• illness, whether physical or mental

Everything you need to DO

1. Know your triggers
2. Identify the key decision points
3. Prepare accordingly
4. Internalise some Golden Rules

It can sometimes help to have some high-level rules which are sacrosanct and serve as overall commandments for good behaviour.

Back in 2015, Andy Hart and I did a podcast episode on this. Our ten financial commandments were:

1. The Stock Market rewards the patient and punishes the rest.
2. Rising prices (inflation) can be your best friend and worst enemy.
3. Long term returns come from investing in the great companies (equities) of the world.
4. All saving needs to be automatic, or it won’t happen.
5. Having and updating your Financial Plan is paramount. Having a portfolio is not a plan and outperformance is not a goal.
6. The media do not have your financial future in mind.
7. Disciplined behaviour will ensure your financial success.
8. There will always be negative news to report. Learn to ignore it. What bearing will today's crisis have on your 30 year retirement plan?
9. Tax is likely to be your biggest expense – learn to control it.
10. Never forget Commandment One.

Maybe come up with some commandments of your own.

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