Another great sketch from Carl Richards:
From Richards’ newsletter accompanying the sketch:
We love control. You name it, we’d probably prefer to control it. But from the weather to our kids, there are limits to what we can control, and in no place is this more clear than our finances… We can’t control the markets, but we can control how we react to the markets. We can’t fix global economic problems, but we can tackle our own financial issues. Some people believe this view is limiting and that it holds them back. I believe it frees you to live the life you want.
Money makes many things in life possible, but when we become too focused on the aspects we can’t control, it just makes us miserable. At some point we have to say, “Enough.” Taking a stand isn’t easy though. There will always be the temptation of the sure thing that tries to pull us away from our plan. There will be moments when we’re completely convinced that we know what will happen, and we’re fools if we don’t act. Ultimately you have to ask the question, “Does this really matter and do I actually have control?” Based on the answer, you’ll know whether it’s worth your time and energy.
This is one of the reasons many investors choose to hand management of their investments over to an advisor, or to mirror investment decisions made by someone with a certain expertise, domain knowledge or discipline that they lack.
