We never talk about our financial status, but when it comes to our love lives we have no trouble sharing the details. Surprisingly, investing and relationships share a lot in common. Perhaps a lot more than you think.
1. The subject is taboo
Shhh. Don’t go there. It’s a sensitive subject to bring up. People might talk about their love lives, but it’s awkward and embarrassing. Perhaps even more strongly we don’t want to talk about our finances and investments either because that too is embarrassing.
2. Your mom’s advice is not always correct
Remember that nice boy next door that had a great job and perfectly ironed shirts? Yeah, he was boring as hell. What makes you think the GICs and high interest savings accounts your mom keeps pushing is the perfect investment?
3. It’s successful when you like everything about it
Your relationships are going to fail if you don’t like the person to begin with. Why the heck would you invest in something that you hate or didn’t want to own in the first place? Fail.
4. With no risk there is no reward
When’s the last time your found a girlfriend or boyfriend sitting around at home watching television? Probably never. When’s the last time money rained on you while sitting around at home watching television? Yeah I thought so.
5. Commitment is important
Imagine flipping girlfriends or boyfriends every hour of every day and thinking you are going to come up with the “right” one. Probably will never happen. Do the same thing with your investments by day trading and you’ll most likely get burned. Don’t go chasing waterfalls. Stay committed and get rewarded with your patience.
6. School never taught you
I never remembered anything in school that taught you how to communicate and develop relationships with others. Quite similarly no one that comes out of school gets taught anything about personal finance. I wonder why?
7. It’s what’s on the inside that counts
It’s so cliche, but appearances might be deceiving. Your relationships are better when you can connect with the person at a personal level. With investments, it’s not about chasing the flashy name or going with what’s hot. Index funds are boring, almost dull to invest with, but what they hold within them and what they do for you is what matters.
8. You need to resolve the differences
In relationships you’re bound to have differences and get into disputes. In good relationships those differences get resolved. Your investments are going to have a bumpy ride along the way too. That’s why things need to get smoothed out by rebalancing.
9. You can go online
Life’s busy and it’s hard to meet new people. Hey that’s why they invented Internet dating. Tinder, Match.com, Lavalife, countless other sites devoted to get you going. Similarly, there are many sites that help you invest. Questtrade, Wealthfront, Wealthsimple, your banks. They all have investment options that you can access online.
10. It’s emotional
Hey no one said that your relationships would just be sunshine and roses. It’s an emotional roller coaster, yet we somehow manage it. Your investments are the same. We might even treat our money with even more emotion than our relationships. That’s why sometimes we do dumb things. But hey we’re only human.