Linz’s Friday Musings – November 8th 2019

G’day all

What a strange week it’s been!  Hard to get into a solid rhythm here in Melbourne with a public holiday for a horse race in the middle…

I always find it strange how as a nation, we have no issue with spending thousands (notice I didn’t suggest ‘investing’) betting on horse races, Tattslotto results, pokies etc, but when someone at the local footy game, suggests they have just put a deposit down or purchased an investment property, we are all – “are you sure that’s a good idea? What if the market crashes?”

I feel our affinity with gambling and a ‘flutter’ on the horses could be a potential drawback or hindrance for us as Aussies, giving us a poor mindset around money. And believe me, our mindset around money, will make or break out bank balances, for sure and certain

It is what we ‘think’ about money that sets a tone in our subconscious that will then determine our wealth level.

If we feel money is bad, or only bad people have money, we will find ways to sabotage our success to make sure we only every have enough to ‘get by’.

If we feel money is a tool, a vehicle whereby we can grow business, employ people & create jobs, purchase things to stimulate the economy, then we will find opportunities to grow our wealth and succeed in our goals (which don’t have to be money focused by the way!)

It’s crazy how this works, but believe me, it does…

Don’t get me wrong, I lost my $10 on the cup like the best of us (think Constantinople is still running) … but we need to understand our mindset around the ‘flutter’.  If you’re at a cup BBQ, or at the races and want to put a few bucks down to have fun, and enjoy the day, then that’s great, knock yourself out!  It can be a lot of fun.

But just stop and think for a sec…what is my mindset around this?  Am I actually desperately ‘wanting’ that horse to come first?  Does it matter to me next week if it does or doesn’t?  Am I actually upset or disappointed, or more so, ashamed or guilty that I placed the bet in the first place and lost?

If these are the emotions your feeling, if you are genuinely upset or ashamed that you placed the bet and SPENT the money; or alternatively genuinely NEEDING the horse to win to help alleviate some finance issues next week, then I would recommend chatting to someone about this…

Mindset around money can often be one of the biggest hurdles investors need to overcome to start becoming successful at investing. 

What’s yours like?

Have a great weekend all and Happy Investing…!!