Simplicity and Your Financial Goals
The investment world can be extremely complex. With algorithms, tax codes, fees, and dictionaries of jargon it can be hard to know what to focus on. The key to learning what to focus on in the investment world is to simplify it.
What is Simplicity?
Simplicity is not “dumbing down,” nor is it ignoring pieces to the puzzle. Simplicity lies in boiling down relevant information so it can be easy to digest. Simplicity sits in-between having “less information” and “more information.”
If we use too much information complexity arrises, but what many people don’t understand is that less information is not simplicity it is lacking.
Financial and Investing Simplicity
Cultivating simplicity in our financial lives and while investing lies in having the right amount of information. Too much information can cause stress, cause us to loose focus, and ultimately cause us to make bad decisions. Too little information leaves room in our mind to wonder what might or might not happen, and when we focus on the future we open the door to fear.
Take out a piece of paper. On one side write “More Information” and on the other side write “Less Information.”
In the middle of the paper write a list of all the relevant information you need to make good financial and investment decisions. Only add the topics of information that are directly relevant to you and your goals at the present moment. Eliminate any information that isn’t related to the financial goals you have set for yourself. Also, be aware to not leave any important information out.
Show the piece of paper to someone who knows your goals and has your best interest in mind. This could be a spouse, a close friend or family member, and/or an accredited fiduciary advisor (who is legally obligated to have your best interest in mind). Ask them if there is anything relevant that is missing from the list or if there is something on the list that is not relevant to your goals. Revise the list as needed and refer to it every time you feel like your life is getting too complicated or stressful.