Money Psychology 5: Getting wealthy vs staying wealthy
Getting money is one thing; keeping it is another.
More than big returns, focus on being financially stable. A combination of frugality and paranoia is the way.
Michael Moritz, the billionaire head of Sequoia Capital, once said it was probably their fear of going out of business, which kept them prosperous for decades. One can’t assume yesterday’s success translates into tomorrow’s good fortune.
So, be optimistic about the future, but paranoid about what might prevent you from going into the future.
Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.
[The Psychology of Money: Lessons 5 of 18]
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