It’s a sunny Sunday morning and you’re out for a walk to your local coffee shop for your weekend latte. As you approach an intersection, you see someone drive past in their new luxury SUV. What is your first thought?
Recently I saw a Reddit post within the /r/Frugal subreddit called The Buyerarchy of Needs. This really got me thinking, many of us have a tendency to want to solve our problems by pulling out our wallets.
The COVID-19 coronavirus pandemic has had far-reaching impacts on the ways we work, play, and live our daily lives. For many this is a time of hardship caused by business closures and job instability. And for others this is an opportunity to acquire investment assets at a discount. There are lessons we all can learn during this time to accelerate the achievement of our own financial goals.
Are you influenced by what other people say and do, or do you make your own choices? Everyone wants to believe that they are independent thinkers and not influenced by what others say. But the reality is that we’re constantly being told what to do by friends, family, and co-workers. Even television and the news media shape the way we see the world and guide our choices. We know our peers influence our decisions, but how strong is that influence really?
General Electric made headlines yesterday, with an investigator alleging a massive accounting fraud at the company. The result was GE shares falling 11% in a single day. This news is the stuff of nightmares for investors. And it’s a perfect example for why you need to diversify!