Simplify Your Behaviour
Everything you need to KNOW
- Behaviour is EVERYTHING
- Behaviour is hard-wired
- Behaviour can be prepared for
Behaviours can be derailed easily, by all sorts of factors:
- apathy – lack of intention
- boredom – looking for excitement
- illness, whether physical or mental
Everything you need to DO
- Know your triggers
- Identify the key decision points
- Prepare accordingly
- 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:
- The Stock Market rewards the patient and punishes the rest.
- Rising prices (inflation) can be your best friend and worst enemy.
- Long term returns come from investing in the great companies (equities) of the world.
- All saving needs to be automatic, or it won’t happen.
- Having and updating your Financial Plan is paramount. Having a portfolio is not a plan and outperformance is not a goal.
- The media do not have your financial future in mind.
- Disciplined behaviour will ensure your financial success.
- 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?
- Tax is likely to be your biggest expense – learn to control it.
- Never forget Commandment One.
Maybe come up with some commandments of your own.