Personal Finance 39 Views

How Do You Handle Money?

When it comes to money, some people, like old Wile E. Coyote, over complicate their financial life. There’s always an Acme Explosives contraption that reduces them to smoking ruble.

It’s the wise Road Runner—the folks who follow a simple straightforward approach toward success—who emerges to enjoy another day.

We use both our intellect and our emotions to make money decisions. The problems pop up when we misuse either. If you're like Wile E., your "gut" will have you play your hunch, go with your instinct or believe something that satisfies a need in you. You’ll fall prey to the huckster promising “22% tax-free returns with no risk” or believe that buying Lotto tickets is a retirement plan.

If you're like Mr. Runner, you will tend to tune out the noise around you and stay focused on the road ahead—your version of success.

Wile E. Coyote Money Strategies

It must be overly complicated to work. Coyotes believe that day trading, hedging schemes, penny stocks, IPO's and speculative ventures promising mammoth returns make perfect sense.

Just because the decision didn’t work the first time doesn't mean it won't work next time. Coyotes hold fast to their belief that their way is the ONLY way. They learn very s-l-o-w-l-y.

The flashier the better. The Coyote will pick the hot stock, the hot manager, make decisions based on Star Ratings and come-hither ads.

Road Runner Money Strategies

Keep it simple and focused. Road Runners don’t get confused or tempted by fancy offerings or unnecessary complications.

Stay on track. The Road Runner has a single-minded discipline that keeps him playing his own game.

Be resilient, no matter what. Road Runners find a way around obstacles and continue on toward their goals.

Wall Street and the financial media love to puff up your expectations, stimulate your imagination or satisfy your greed gene with ACME-type solutions: overly ambitious designs with underwhelming results.

Resist!

Before you make a money decision, put your Road Runner in charge and avoid the smoldering pile of misery.

psychologytoday.com