Don’t have a “Foreclosure” state of mind - How to maintain a bull mentality in a bear economy.
Tuesday, April 07, 2009
Turn on the local news, open your city paper, check your email and chances are high that you will be faced with a dark outlook on the future. It seems that no matter where you turn, many people are starting to throw up their hands, cling to their “security” and turn back their clocks to 1930. To listen to these voices, one would quickly assume that the Great Depression is here once again; the stock market will never re-bound, real estate is no longer a good investment and the chance to live a joyful life is just wishful thinking. Well, call me crazy but I’ve never been one to listen to so called wisdom. You could dismiss my optimism by writing me off as simply a “glass half full” spirit. However, one simply has to look at the facts to see that great days are ahead.
I refuse to have a foreclosure state of mind. I have committed to maintain a bull mentality even though we are going through a bear economy. Why? It’s not because more millionaires were created during the Great Depression than during any other time in our nation’s history. It’s not because the stock market, over 10 year periods, has always risen in value. It’s not because real estate will always be a good long term investment, simply due to the fact that as the nation continues to grow, land naturally becomes more valuable. Okay, so the facts are comforting when we stop to remember them. But I’m not the only one who has looked back at the truth history shown us. There is a small minority that are speaking words of hope; yet I still see worry in people’s eyes. And while I hope that the facts above have helped you feel better, if there is still a twinge of worry deep inside, I think I may know why.
Even as our logical mind tells us that statistics are on our side, we quickly realize that we are much more than just a brain. It seems that our heart, soul and physical bodies are also affected by outside factors. We begin to quickly notice that money is not everything. So, what do we need to do? How can we continue to have hope even when we watch our 401K drop in value almost as quickly as our home? The answer comes in diversity. Any solid financial investor teaches the idea of financial diversity; the thought that when investments are spread evenly, there is much less risk. Even if one of your assets is not performing well, you have others to help you through the dry times. I believe this is not simply a good financial plan but one that works on a personal level as well. As we look at our lives, it becomes evident that we are made up of 4 parts: our heart, soul, mind and strength. Failing to give each of these areas attention can be detrimental in one’s life. However, intentionally focusing on these areas is the secret to finding true joy no matter what depressing headline story kicks of the evening news.
I refuse to have a foreclosure state of mind. I have committed to maintain a bull mentality even though we are going through a bear economy. Why? It’s not because more millionaires were created during the Great Depression than during any other time in our nation’s history. It’s not because the stock market, over 10 year periods, has always risen in value. It’s not because real estate will always be a good long term investment, simply due to the fact that as the nation continues to grow, land naturally becomes more valuable. Okay, so the facts are comforting when we stop to remember them. But I’m not the only one who has looked back at the truth history shown us. There is a small minority that are speaking words of hope; yet I still see worry in people’s eyes. And while I hope that the facts above have helped you feel better, if there is still a twinge of worry deep inside, I think I may know why.
Even as our logical mind tells us that statistics are on our side, we quickly realize that we are much more than just a brain. It seems that our heart, soul and physical bodies are also affected by outside factors. We begin to quickly notice that money is not everything. So, what do we need to do? How can we continue to have hope even when we watch our 401K drop in value almost as quickly as our home? The answer comes in diversity. Any solid financial investor teaches the idea of financial diversity; the thought that when investments are spread evenly, there is much less risk. Even if one of your assets is not performing well, you have others to help you through the dry times. I believe this is not simply a good financial plan but one that works on a personal level as well. As we look at our lives, it becomes evident that we are made up of 4 parts: our heart, soul, mind and strength. Failing to give each of these areas attention can be detrimental in one’s life. However, intentionally focusing on these areas is the secret to finding true joy no matter what depressing headline story kicks of the evening news.
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