By Chris Castles
Have you ever jumped in your car and said ‘Right, I’m off on holiday!’ but had no idea where you were going?
Have you ever driven to the airport to jump on a plane without knowing which airline you were going on or where you wanted to go?
For most of us the answer would be “Of course not!”.
So why is it that when we come to planning for our financial future we do exactly that? We go out and buy that rental property, buy some shares, or maybe even start a business without knowing where we want to go. It just doesn’t make sense.
The answer lies in social psychology. You see the choices we make are shaped by what we’ve seen growing up, by what our friends are doing, by what we see and hear on TV. Humans are very social animals. We want to belong. We want to fit in. So we tend to be influenced by what others are doing, or what we think they are doing, even though it has no bearing on what’s good for us.
So, the next time you’re looking to buy a stock, or heading off to an auction for a rental property, ask yourself ‘Why?’. Taking the time to understand what’s important to you and where you want to go is so much more important than how you get there.
If you would like assistance when it comes down to planning your future, don’t hesitate to contact one of the team at Cosca.
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