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Golden Rule #4
Keep Your Emotions In Check
No matter what aspect of your finances — your savings, your investments, your speculative portfolio — the ability to control emotions is a critical key to success.
If you let emotions get the better of you, your chances of success in any area can be greatly diminished. How do you stay unemotional, disciplined, and objective? Some key points to remember:
- Treat your money as a business. It's not a game. Consider your income as revenues. Categorize and keep track of your expenses, including broker commissions and fees, as you would in any business. The more you do, the more objective you will be about every aspect of your money.
- Review your financial position monthly. Do this much like you would review your business's monthly financial statements.
- Pay attention to trends. If you have what looks like a continuing declining trend, stop, re-evaluate, and seriously consider changing your strategy. If you feel that requires firing your adviser, don't hesitate — whether it's me or anyone else.
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