Find Your Purpose

Find Your Purpose

October 21, 2021
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We live in a world where we seek constant gratification. We have a product that can retrieve any sort of information in a matter of seconds in our pocket. This has resulted in investing becoming much more streamlined.

I find myself falling into the trap of checking my Robinhood and Fidelity apps multiple times throughout the day. Often, I don’t want to make any trades but rather view these apps almost like a social media platform. It can drive you crazy, checking the apps non-stop seeing if you are up or down.

With all of the information we have access too, your ability to buy stocks on a whim has increased significantly. Investors can get the opinions of well-established professionals in the industry and trust them rather than doing the research themselves.

Another trend that has been established over the past couple of years is that fundamentals don’t seem to matter anymore. You see the success stories of someone turning a small amount of money into millions by taking on massive amounts of risk (i.e. crpyto’s, NFTs, etc.)

We were always told to look at P/E ratios and discounted cash flows. If you invest in companies that have strong management teams and are profitable, then you will be rewarded. However, investors who scoff at this idea of thinking have been rewarded lately for taking on massive amounts of risk. And to be honest, good for the people who do it and become financially free.

I just don’t have the passion of going down that path. I’d rather be able to live a life of simplicity rather than checking my positions 24/7. Arguably one of the biggest returns I seek while investing is piece of mind. Seeking a return and beating the index is great, but I’d rather invest to live a life I want to live.

Which leads me to the idea of finding a purpose for your wealth and money. Whether you make one million or ten million, odds are you can live a similar life. It is all about assessing your risk tolerance and being honest with yourself of what you’re ultimately looking to achieve.

Personally, I want to be able to travel and try new things. I never want to be in a position where I can’t do something I want to do simply because of my financial situation. Obviously, you should keep things in moderation, but frankly life is short.

You can continue to be responsible in the market and use it as a means of “gambling”. Making short-term decisions for the adrenaline rush and betting on recent trends that you are seeing.

But ask yourself, if you spend all of your time worrying about the markets, who ultimately wins in the end?

 

Disclosure: This material is for general information only and is not intended to provide specific advice or recommendations for any individual.