Ten Simple Money Rules for Investing Success
Bad decisions and poor behavior are the primary reasons why many fail to meet their financial goals.
Bloomberg, July 5, 2021
I was writing a column last week on the dangers of leverage, and being a fairly undisciplined writer, I found myself going off on numerous digressions only tangentially related to the main subject. The modest discipline I do possess is in letting those tangents play out, then editing them into another doc called “[title] edits.”
While the leverage discussion is still work in progress, I did end up with a list of rules beyond critiquing using borrowed money to invest. That is below.
As this developed I asked readers for their favorite money rules (here, here and here) and got quite a list from also. Between the 10 below and the Twitter rules you certainly have plenty to choose from:
10 Simple Money Rules for Investing Success
1. Investing Is Both Simple and Hard
2. Behavior Is Everything
3. Moderation In All Things
4. Risk and Reward Are Inseparable
5. Spend Less Than You Earn
6. Leverage Kills
7. Understand Your Role
8. Be Aware of Your Limitations
9. Own It
10. Invest In Yourself
You may know a theme through out all of the above, and it can be summed up in one word: “Behave!” Ill-advised decision making and poor behavior are the biggest reasons why many fail to meet their financial goals. All of the above are (directly or indirectly) behavioral issues dressed up in the lexicon of finance.
Continues here Ten Simple Money Rules for Investing Success
I originally published this at Bloomberg, July 5, 2021. All of my Bloomberg columns can be found here and here.