Doubt management

[quiggles]

Hanlding debt is one thing that we call get used to in RE, but what about handling doubt? I find that as the market starts moving into more troubled waters (and it is, IMHO) that I need to keep myself positive.

I usually do an emotional balance sheet of negatives, positives and contingencies, and I write these down. Generally speaking it seems to do the trick in clarifying probloems and indicating areas where I should act.

What do others do or think?

 

[Sim]

I think starting with a very clear set of goals and understanding your own motivations for investing, and then having a definite strategy in place to get you to those goals should be able to help you through most of the doubt periods. You just need to keep reminding yourself 1) why you're doing this, and 2) that most plans need time to work, so just keep at it and be patient.

It also pays to have a life outside of investing ... if all else fails - go concentrate on something else for a while, and don't be so emotionally dependent on the growth of your investment portfolio.

 

[duncan_m]

Hanlding debt is one thing that we call get used to in RE, but what about handling doubt? I find that as the market starts moving into more troubled waters (and it is, IMHO) that I need to keep myself positive.

I usually do an emotional balance sheet of negatives, positives and contingencies, and I write these down. Generally speaking it seems to do the trick in clarifying probloems and indicating areas where I should act.

What do others do or think?

A few things I do regularly to keep my enthusiasm up and my doubts at bay :

- Browse the somersoft forum
- Help someone else get started investing
- Meet with like minded people
- Curse the rush hour traffic
- Re-read the truely great wealth books
- Laugh at the Joneses down the road each time they upgrade their car
- Log onto Netbanking and see what rent I recieved that day
- Re-work my Balance Sheet
- Fire up Excel and work out a new way of forecasting my wealth in 10 years
- Listen to some wealth related MP3's.
- Go buy some new (deductible) tools
- Browse the Tax Office site

I think like weight/health/happiness management managing your investing mind-set is all about prevention rather than cure.

 

[keithj]

Hanlding debt is one thing that we call get used to in RE, but what about handling doubt? I find that as the market starts moving into more troubled waters (and it is, IMHO) that I need to keep myself positive.

Markets determine the PRICE of assets. YOU determine the VALUE. The market is usually wrong, especially in the short term. In the long term the price will match the value.

The bottom line is - take a long term view. The market will eventually agree with you.

 

[Aceyducey]

You have to be able to step back & look at the big picture.

Small perturbations in the market over 3-5 years are unimportant.

It's like investing in stocks, but at a much slow rate.

(BTW I don't mean this in the way Keithj means - you shouldn't expect the market to eventually agree with you - the market is NEVER wrong)

And GET A LIFE!

Don't stress or worry about the day-to-day value of your portfolio, go out & do other stuff. Look beyond property, there's certainly better investments out there!

Cheers,

Aceyducey

 

[simonjulie]

Hi All
You can have great plans and strategies but unless you have an iron clad escape plan in place all of your grand plans can be undermined.
Ask the question; If this goes belly up in how many ways can I get my money back or at worst how do I stay afloat until the situation changes?
kind regards
Simon

 

[shaunwalker]

simonjulie
you are spot on, i guess you have to think of the absolute worst and prepare for it.
for me i have 6 months ip repayments sitting in an account.
i also have about 20k worth of shares i can sell.
so i'm absolutely covered at this stage of the game.
cheers all

shaun

 

[kissfan]

simonjulie
you are spot on, i guess you have to think of the absolute worst and prepare for it.
for me i have 6 months ip repayments sitting in an account.
i also have about 20k worth of shares i can sell.
so i'm absolutely covered at this stage of the game.
cheers all

shaun

Get your $3K back and have $23K worth of shares you can sell

Regards
Marty

 

[shaunwalker]

nice one,
what to do with 23k?
i know, one hell of a party hows that

shaun

 

[MarkR]

Quiggles,
Been in this place a LOT the last few yrs, I seem to keep getting hits when I think I'm on track which can make me question why I'm trying to succeed . The technique I have is to stop & think about what the hit is & why it's there. Then work through my options vs my goals, formulate a plan & start acting on the plan. Given I take responsibility for my life it's not too hard but it can be a bit unsettling when you've got all these grand plans for a nice PPOR & 2 IP's within 12 months & suddenly discover you're going to struggle to get the PPOR !

I have a couple of friends I can talk to who'll listen & support me when I'm flat, they aren't necessarily great investors, just good friends who don't judge me or knock me. It can be nice just to vent a little occasionally . I only listen to positive music (Screaming Jets - Shivers is NOT on my playlist) & NEVER discuss my plans/goals with someone I know will just knock them & me (apart from my wife ).

Major thing I find is to put it into perspective, I turned 40 yesterday, & when I look back I made a decision about money when I was 25 but didn't learn to act on it until 36, & I am now sooooo far ahead compared to where I used to be. When I look at it in this way I have to accept that I can't stop even if I wanted to, so I just change approach not the goal. I accept that there's going to be times of doubt or despair, but they're infrequent & I realize that by deciding to change them I can (therefore I do). I have 12 month, 5 yr, & 10 yr goals written, & track to a monthly 'goal/to do' list to ensure I stay on-track & all I have to do is look at where I was at 5 yrs ago & know that my 5 yr goals will be achieved. Also a hug from my 3 yr old works wonders when I get home from work, so if you don't have kids, borrow one for a hug moment, just make sure the parent knows you

My favourite saying at the moment is "persistence is a measure of a man's self-belief". Hang in there, the sunshine ain't far away.......

Mark

 

[Monopoly]

Cruising

but what about handling doubt? I find that as the market starts moving into more troubled waters (and it is, IMHO) that I need to keep myself positive.

What do others do or think?

Don't worry Quiggles it gets easier after 20 years or so!!!

Seriously, I see doubts as indicative of my need to reassess my current position. Once established, if not completely satisfied, shift the lever which has been parked in neutral to overdrive and merrily set off along the road to a new beginning (or maybe just an old one, but with renewed vigour).

Cheers,

Jo

 

[likewow]

Nice post Mark and i know what you mean about the hugs from kids. Its absolutely priceless and if you need reminding why youre doing all this stuff theres your answer. Keep your eye on the long term without getting anal about it (enjoy life as well) and you'll do fine.

btw: Nick Cave wrote Shivers as an 18yo! when he formed the Boys Next Door? pretty impressive huh, especially when you hear Nick's deep solemn voice singing it.

 

[Monopoly]

Major thing I find is to put it into perspective, I turned 40 yesterday, & when I look back I made a decision about money when I was 25 but didn't learn to act on it until 36, & I am now sooooo far ahead compared to where I used to be. When I look at it in this way I have to accept that I can't stop even if I wanted to, so I just change approach not the goal. I accept that there's going to be times of doubt or despair, but they're infrequent & I realize that by deciding to change them I can (therefore I do). I have 12 month, 5 yr, & 10 yr goals written, & track to a monthly 'goal/to do' list to ensure I stay on-track & all I have to do is look at where I was at 5 yrs ago & know that my 5 yr goals will be achieved. Also a hug from my 3 yr old works wonders when I get home from work, so if you don't have kids, borrow one for a hug moment, just make sure the parent knows you

Happy Belated Birthday Mark; the Big 4-0 woo hoo !!!!

Keep up the goal setting, it helps you to stayed focussed, but more importantly (as LikeWow said) the answer can quickly be found in the hugs from your children; there's nothing that can compare!!!

Cheers,

Jo