Too often, when we are dealing with money, we lose to greed. What exactly is greed and how can it hurt? Greed is an emotion that surfaces almost unknowingly. It is an exciting feeling that can overtake us, influencing our ability to be practical and logical.
If you have ever played a slot machine, you most likely have experienced greed. Once you hit that first jackpot, the rush you feel, as those coins fall into the bin, is greed raising its ugly head. If you could collect your winnings and walk away… you have fought the evil greed monster. Most likely, you did not. You continued to play again until you had lost all you had won.
Greed can surface at other less obvious times as well. Greed makes smart people behave in dumb ways. It does not only affect gamblers, but also investors. It can steer you into unhealthy directions and bad choices.
The best way to fight greed is to make plans before you deal with the emotion. Force yourself to walk away with a nice profit. Don’t try to keep reaching for more. This is true at the blackjack table, as well as the stock market and even your own paycheck.
Be realistic about your investment choices. Most honest choices don’t promise outstanding profits. Average profits are good and safe. Don’t think you can outsmart everyone. When it comes to your money, secure investments are always the way to go.
Don’t let greed ruin your life. Not only can it steer you into risky money management, it can also cause you to make poor career choices. Let’s say your best buddy is starting a business and wants to pay you twice your current salary to run it. If you take this sort of risk, you are letting greed control your decisions.
Whatever you do, look for the average. In reality, average profits consistently over time lead to more total wealth than lots of risky endeavors.
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