When someone looks back on their past financial success or mistakes one thing always comes to mind, and that is: how did it happen? They think, “was it my doing, my fault, someone else’s advice or fault, or just what set things in motion to bring on a “successful financial memory”, or a destructive one.
It’s important for the sake of learning and growing in our understanding of financial matters that we take a look at where we are at today in light of our financial goals and where we were say, 5 or 10 years ago. This “look-back” can be a major self-guide in setting a course for better financial decision making in the future. For example, if you lost a bunch of money in the stock market in the mini-crash of 1987 or in the later years after 2000 the thought of ever buying a stock again could make you more likely to walk on a bed of hot coals than try the market again, right?
The better move is to understand how the markets work in light of your financial situation and risk tolerance levels and obtain an Asset Allocation Model that’s right for you. Memories are good in that we use them to teach us things that are constructive. Regrets can hurt us if we let them rip our self esteem. One thing is for sure, getting a money coach and guide is critical. A good coach has the right compass, one that points to “due-north” …towards reaching our financial goals.