Three Fears That Hurt Your Investments
Invest In Your Life Podcast
Episode 25: Three Fears That Hurt Your Investments
In this week's episode, I talk about three fears that can be devastating to your investments and financial life. These are fears that we all face at some point, so if you notice that one (or more) of these is present in your life, it's okay. If you need help working through some of these fears, contact me -- I'm happy to help.
Full Episode Transcription
00:04 Welcome to the Invest In Your Life Podcast, the show where we explore the connection between personal growth and personal finance. My name is Patrick King, and in each episode we'll talk about what you can do to live a life that's truly rich. Don't take this the wrong way, but I am not giving you advice. I only give advice to clients who have hired me to be their fiduciary financial advisor. If you're not one of those folks, then just consider this to be helpful tips and information and be sure to consult with your financial advisor, your attorney, your CPA, your which doctor or your mom before you try this at home.
01:02 Welcome to the show everybody. I've got a great show for you today. We’re going to talk about the three fears that hold us back financially. But before we get into that, I want to tell you real quick about The No Bullshit Guide to Investing. It's an online course for people who maybe don't want to invest the time or money to work with a high level financial planner like myself, but they still want to get their investment started off on the right foot. So for them, I've created The No Bullshit Guide to Investing online course. If that is something you think would be interesting, go ahead and visit my website. It's www.investinyourlifepodcast.com. Go to the resources section, click on The No Bullshit Guide to Investing and at checkout. Enter the Promo code, TELL2 to get that for free.
01:59 And all I ask in return is that you tell two people about the podcast. I'm trying to grow this thing and give me some candid feedback on the course in case there is indeed some bullshit there. I tried to make this so it was a little light, A little fun. So, hopefully I did that. Let me know if I didn't. But there's some valuable content there: over an hour and a half of video content. There are some downloadable guides that are available for you. So check that out. The No Bullshit Guide to Investing. It's at www.investinyourlifepodcast.com under the resources section. So check it out today.
02:39 All right, let's get everything started today. I always start these podcasts with a gratitude. We've got so much in our lives to be thankful for. Even as we think about trying to grow our net worth and grow our experiences in life, there's always something to be grateful for. So my gratitude this week is our third dating anniversary. Me and my girlfriend had been dating for three years and she's amazing. I'm so lucky that she's in my life. She's such a huge supporter. Someone that's totally on my team. And for our third anniversary, we went to the Atlanta United game last night and it was awesome. Gosh, Atlanta United is so fantastic. That truly is named appropriately because Atlanta is just a weird place. If you've ever been here, if you've ever lived here, it's a different kind of place and it's kind of crazy that, of all things, it's the dang soccer team that brings us all together. It's not the Falcons or the Braves or the Hawks or any of that stuff. It's the dang soccer team and it's so much fun. If you haven't been to match, go check it out. It is a great time. So, I'm very, very grateful that that I've got an amazing a woman in my life and she wants me to take her to the soccer game. I must be doing something right. So, alright, that's gratitude for today.
04:13 Okay, let's get into it. The topic of the day, we're going to talk about the three fears that hold us back financially. So, if you're feeling – I'm going to list these suckers out, and if during this time I'm talking about this and you're maybe feeling bad, you know that this is something that's holding you back. Don't just – all of these fears get us all at some time or another. You are not alone if one of these things is holding you back. So, this is less of a, “Hey, these are bad things,” kind of a kind of an episode than it is more of like, “Let me pull back the curtain and show you these fears that hold us all back in some form or fashion”. So, don't feel bad. Don't feel guilty. Just kind of notice that this is a thing and you're not alone.
05:06 So, yeah, let's get started. Fear number one that I've got is fear of making a mistake. So, I've talked about loss aversion before or, or have I? I don't know. I feel like I have. I've talked about it to someone, it may not be on this podcast. Loss aversion is the preference to avoid a loss over acquiring a gain of the same amount. It's a preference to avoid a loss over acquiring a gain of the same amount. In fact the, the folks that research this say that a loss can feel three times more intense than a gain of the same amount. So, that gives you an idea of how those instincts that we all have give us this lean towards preferring not losing over winning when it comes to, especially our money and our resources. So, knowing that, it makes it tough to take some risk when it comes to our long-term investments.
06:18 In order to take that risk, in order to grow your money, you've got to take some of that risk and a risk of loss comes along with that. Risk and return are related, right? And you know, you kind of have to take some risks when it comes to your investments along the way. If not, you're going to be just standing in place. You're going to risk losing ground to inflation over time. Things are going to get more expensive in the future. They always do. That's just how it works. So, yeah, that means that making a mistake along the way could potentially be costly. So, it's easy to be afraid of doing something because I'm afraid of going to lose money. And if I make this mistake, it's going to cause this to happen. So, I'm just not going to do anything. You know, paralysis analysis is where this comes into play pretty big. So, you can stay stuck for a long time. If you're afraid of making a mistake by playing defense, you never put any points on the board.
07:25 So, this is a great example of scarcity mentality and how it comes to play in our investing. A fear of making a mistake, fear of losing. And if you're watching me on this, on YouTube right now, my light went out for some damn reason. I have no idea why. I don’t know if that's going to be good or bad. Anyway, let's move on. So, that's fear number one, making a mistake. Fear number two: the fear of upsetting someone. This is a big one, and it shows up frequently in relationships, whether it's marriages or parent / child relationships, the fear of upsetting someone can negatively impact our finances and in quite a big way. You know, some examples of this are the husband who's afraid to tell his spouse that their spending's out of control because they don't want to rock the boat.
08:26 It's the wife who won't confront her husband about his expenses, that that maybe she can see but doesn't understand exactly how much is going out. It's the spouse who wonders if things are okay financially, but hasn't taken control or ownership of the finances in such a way that they're afraid to broach the subject because they don't want to rock the boat. It's the person who can't say no to the parents or the in-laws and whatever various requests that they have along the way. So, for the sake of avoiding these uncomfortable conversations, the folks who are afraid of upsetting someone remain in these unhealthy financial patterns. So, that's fear number two, the fear of upsetting someone. And the last fear I want to talk about today is the fear of knowing. This one's a little bit of a different animal and I've seen it a lot over the years. Surprisingly, lots of people will bury their heads in the sand in order to not feel the responsibility to do something about their situation. It's just easier to not know if they're okay or not.
09:52 Man, they're afraid to know how far behind they are in saving for their retirement. They're afraid to know that – man, if they understand, they're all of a sudden responsible, it would end up causing them suffering. And that blissful ignorance almost always ends up in suffering at the end. So, that fear of knowing, the fear of having to take responsibility, it's a biggie. It's easy to sit there and put our heads in the sand and say, man, I can put that off until tomorrow. I've got important stuff to do today. But that nagging in the back of your mind, you know, it's never going to go away. It's better to address these things now. So, yeah, that's it. The fear of knowing. So the three fears that I've talked about today, they're fear of making a mistake, the fear of upsetting someone and the fear of knowing.
10:50 So what do you think? Are these fears showing up somewhere in your financial life? Do you need help working through them? If so, give me a shout. Let me know kind of what's getting in the way. Shoot me an email. My email is firstname.lastname@example.org. I'd love to hear from you and love to see what you think of today's episode. What do you think of these three fears? Are there other fears that are holding you back financially? Give me a shout: email@example.com.
11:35 Right on. I like to end each episode with a section I call Pura Vida and that's a reference to the Costa Rican people. Pure Living. And for me, pure living shows up in a lot of different ways. It's around the things that maybe I do differently in life, the things that I'm excited about. And today's Pura Vida is Labor Day weekend 2019. A long-standing tradition that I have with a good friend of mine, Bryan, is that he has always come up to Atlanta for Labor Day. Atlanta is a fun place to spend Labor Day if you haven't done it. We've got a bunch of cool stuff going on. We’ve got DragonCon in town. There's always the Chick-fil-A cook-off – or Kickoff? Cook-off? Probably both of the above – and a ton of college football fans descend upon the city. And then finally there's always some sort of like random home and garden show. So, you get these very, very different groups that are mixing in Atlanta and it's a fun time to do some amazing people watching. So, I'm excited about that. Excited to catch up with an old friend and excited to get down to hopefully the DragonCon parade. We can get there early enough to get a good place to watch. And yeah, that's my Pura Vida this week.
12:56 All right everybody, that's the episode today. I hope you enjoyed that. Those three fears that hold us back financially. Let me know what you think. If you've got questions, if you've got a request for an episode, let me know. If you want to be interviewed, hit me up, firstname.lastname@example.org. Check out The No Bullshit Guide to Investing. If that's something you're interested in, it's on the website, www.investinyourlifepodcast.com, in the resources section, use the promo code TELL2 to get that for free. And all I ask is that you tell to people about the podcast. And give me some feedback on the course. So, thank you so much for listening. That's the episode for today. Until next time, cheers. Thank you for joining me today to find out more and get access to my free financial resources visit www.investinyourlifepodcast.com. The thoughts and opinions expressed here are my own and or for general information only. They are not intended to be recommendations or specific advice for anybody. I'm not a doctor or a licensed therapist, so please consult with your healthcare provider if you have any issues regarding your physical or mental health. Any investment performance. This referenced here is historical and of course has no guarantee of future results. Last but not least, the Easter bunny isn't real.