11 Sketches that Illustrate the Path to Financial Happiness
New York Times columnist, author and financial planner Carl Richards has been a long-time friend of Stewart Partners and made a career out of exposing and analysing what he calls the “behaviour gap” — the gap between what you should do with your money and what you actually do.
Richards has boiled down his wisdom on wealth and happiness into 11 of his sketches that he’s allowed us to share with you. Please enjoy...
1.
Focus on things you can control, like spending and discipline.
2.
No matter how complicated investing may get, some things (like behaviour) matter more than others (timing the market).
3.
Your portfolio design is one of the things that matters. A well designed portfolio can be the difference between good investment outcomes and disappointment. The elements, like those shown below, should create one cohesive unit. Every element in your portfolio should have a purpose and a direct line to meeting your objectives.
4.
Proper diversification of assets isn’t just about having multiple types of one investment – it’s about making sure your investments are significantly different from each other.
5.
It’s ok that the path between you and your financial goal isn’t a straight line.
6.
As long as you stay focused on achieving your own financial goals instead of being sidetracked by what other people value most, you’ll get there.
7.
Rather than falling into the typical market cycle…
8.
Keep repeating what works
The remaining sketches are pretty self explanatory!
