Who's In Control of Your Fortune?
Open any fortune cookie and you’re sure to find some cheap life or money advice. “Don’t worry about money, the best things in life are free.” may greet you on a miniature scroll between those shattered halves of fried sugar. Usually, the advice is about as useful as the lottery numbers on the backside. Wall Street is also filled with fortune cookie advice; “buy low and sell high” might serve as quick inspiration, but never offers any context on the who, what, where, or why of the situation.
It’s said that knowledge is information, but wisdom is understanding. With fortune cookies and personal finance, ask first how the advice applies to you and your life. Wisdom begins with the right perspective and can help you make the right decisions.
With that said, here’s just a few pieces of advice we’ve found to be true in almost every context:
“Pay yourself first”- it’s easier to save money if the first bill you pay is your savings account. Saving what’s “left” at the end of the month is usually a much smaller amount (if anything).
“Don’t try to time the stock market”- Jumping in and out of stocks based on events like the election usually leads to significant under-performance. Over the last 30 years, investors who sat out only the 10 best S&P 500 days missed 50% of the gains.
“The long run is the only run that matters”- Shift your focus towards what you’re trying to achieve over the long haul. Don’t let trend-chasing, setbacks, or under-performance derail your plans.
Finally- talk to someone! Our amazing community has dozens of CPAs, financial planners, insurance agents, and specialists in various experts. Most people have a hard time talking about money, but they might be missing out on some great personal advice from an experienced expert.
After all where else are you going to get advice- a fortune cookie?