Life can throw some wrenches your way, especially when you live in a post-pandemic world with financial uncertainty on the horizon. When it comes to your financial game plan, it’s always a good idea to focus on areas where you can direct the course of events. When you are unable to control a situation or outcome (like most things in life), it is best to have a plan to deal with it.
Here are three myths and ideas to have a strong plan for the uncontrollable:
Myth 1: Controlling People
I have learned from operating companies as large as 50 employees, that you must focus on people’s strengths, and accept them for who they are and how they operate. This applies not only to work, but to every single relationship in your life. Fortunately, I was raised in a high acuity personality environment. My mother analyzed personalities for a living. Barbara is an expert consultant helping large companies to analyze personality profiles which help them understand why people behave in certain ways, utilizing the DISC system. Additionally, we have been using the Culture Index extensively through our business partner, Don Dalrymple in very effective ways.
You cannot change people, nor should you try. Understand how they operate and bring out the best in them.
Myth 2: Controlling the Markets
If you decided to sell your real estate back in November 2016 because the S&P/Case-Shiller National Home Price Index pointed to the top of the market, you would have missed out on the largest real estate bull run in the history of real estate. The Index climbed from 184 to 284 in four years. When planning for real estate, you must consider liquidity needs, demographic growth projections, and tenant rental income.
Devising a plan to continue to cash flow your property over 10 years or more is the best way to accumulate massive amounts of equity without worrying about how to time the markets.
Myth 3: Controlling the Government
As discussed in my previous blog dated April 21, 2021, Uncle Sam’s Deadliest Tax, Inflation, we are currently witnessing unprecedented inflation as a result of relentless deficit spending and irresponsible fiscal and monetary policies coming out of Washington DC.
You can hedge against the government’s predictable tax, print, and spend policies by investing in real estate, commodities, and non-US denominated foreign stocks and currencies.
We all want more control, but at the end of the day, what matters most is that you have a plan to manage the challenges in life that you cannot control. This will help you to enjoy your life in a way that is much more stress free and informed. And when you have your plans in place, I recommend the following book by Dale Carnegie, How to Stop Worrying and Start Living. One of my favorites.