Dealing with Emotions During Financial Downturns
When we see the book titled "Rich Dad, Poor Dad", we think of the author - Robert Kiyosaki, and his many notable quotes.
I wanted to pull out this quote by Robert Kiyosaki because I feel it is very timely - especially with the turmoils we are seeing in the market these days.
"The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way." -- Robert Kiyosaki
The journey of investing can be an emotional roller-coaster. The value of our money goes up and down, sideways and backward, in loops and hoops. And what we dislike as humans more than anything in the world is losing money.
Read: 3 Tips to Safeguard Your Personal Finance in the Midst of Inflation
Anyone who has lived through a market crash has witnessed anxiety, dismay, fear and panic as wealth starts to disappear, and losses start to mount. During these times, our experience, common sense, and beliefs in one’s plan may desert us.
But it is how you react during these moments that define what your returns will be and what kind of investor you are. What is required is mental fortitude.
How committed are you to achieving your goals? Can you stick with your plan even in the darkest of times?
Long-term investing is very much like an elite sport. Ultimately, the game is played between your ears. Creating significant wealth requires time. Just like how Rome wasn’t built in a day, all good things take time.
It also requires strong mental skills. And having a good support system can add obvious value. I am thankful that most of my clients allow me to do that for them - to help them be more disciplined, and thus successful investors.
In such times when we can feel alone with our fears, we need to remember that many others are going through similar financial concerns, too. Situations like these actually give us a chance to demonstrate our strength and resilience to understand and work around market volatility.
Read: 3 Things To Do If You're Concerned About Your Investment When Markets Decline
If you need a support system as well, let me know. I’ll be happy to help.
In the meantime, remember to take deep breaths and trudge on. As with every other market crisis, we will ride it out :)