Believe it or not, you get investing personality types! I am one of 4 brothers, raised by the same Mother and Father and we all invest differently. Now if you can admit that you have a problem, you are 50% towards solving it!
3 of the 4 investment personalities need help. The 4th one doesn't because he/she is consumed by understanding investing. Let me take you through the 4 personalities and help you solve your problem.
The Fearful person:
This is the person that cannot and will not go into the proverbial investment water! If you ask him today where his money is he will say "cash". If you ask him in 10 years he will say "cash". Then you tell him that inflation is 7% and after tax he gets 5% on cash, losing 2% of his investment value each year and he will say "but shares are too risky". This is the person that can never retire because for every Rand he earns, the tax man takes 40% and inflation the rest. This person has to work an hour to earn a $. He will never have what we call "passive income". Money being earned on investments while he is sleeping or drinking coffee.
The Cure for the fearful person: Go see 5 independent financial advisers. If they all tell you to invest some of your savings in shares and they give you the same reason, believe them! I mean really! If a lawyer tells me that I will go to jail if I steal a car, I believe him.
The Reckless person:
Now this dude is the opposite of the fearful one. This guy is bullet proof, balls to the wall, nobody can tell him anything. His mania is usually driven by greed. He will make and lose millions during his life and the end result is usually not in his favour. He is lucky, not wise and you should never get sucked into his plans.
The cure: Go see an independent financial advisor. Let him calculate how much money you need to be financially independent for the rest of your life and give him that amount to invest and manage for you. You can take the rest of the bucks and do whatever gives you a rush.
The Ignorant person:
This is somebody that doesn't care about money. For them it is all about life and living. Money has no meaning and at best it is a means to an end. If they do not stumble upon a "money spinner" passion they will not compromise their beliefs just to make some cash. These people are also very generous and will often give and not receive. They will also believe the rubbish clever sales people tell them and get burnt badly. Because money is not important to them, they need very little. The problem is that because of their disinterest in money, they miss even the most basic opportunities to invest wisely, getting money that they can give away if they like.
The cure: Just listen to somebody you trust and that knows about investments. Let that person advise you on not necessarily making money but rather just not wasting money.
The Calculated investor: This person eats, sleeps, drinks and talks investments. He will not always be right but because he understands investments, he will be conservative and bold over time, winning 51% of the time and losing 49% of the time. He will get to a point in his life where he generates more money from investments (passive income) than from working. He understands two things very well and they are, patience and respect for money.
His advantage: He knows that investing is a science. No single investment can always be the right one and no two people should invest in the same manner.
Life is a balancing game, so too investments.
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