Does your relationship to your money define you? It's an important question, because your emotional attachment to money can significantly influence your investing results.
Money of course is neutral-it has no feelings and it doesn't care. When you identify your emotional connection to your money; and learn to deal with it objectively, you can move from a "present orientation" in your thinking towards a "future vision" for accumulating more capital (saving rather than spending), taking better care of it (stewardship) and sharing it with family members (reciprocity).
This is important because you may think you want to get rich more quickly these days, given all the market volatility. In reality, it's important to keep your eye on the ball.
Most people simply want to be affluent. I like to define affluence as having three main outcomes:
Most important, thinking about affluence over time, rather than just for today, requires an afer-tax focus. In the end, it's what you keep that matters.
So you can stop thinking emotionally about your investing activities, today. Instead, from a "Real Wealth Management" perspective we want to anticipate how much money is available now and in the future when we need or want it. This requires three skill sets:
It can certainly help you greatly to be assisted by a professional services community that follows an inter-advisory, client-centred process for managing your family's wealth.
But in the end, it's your money. You're the boss of it. Thinking about the flow of your money over the long term, and on an inter-generational basis, can help you think about current market volatility over several economic cycles, rather than just the current one. Your decision-making will likely be different through such a lens.
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