Michael on October 26th, 2007
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You: Okay now I know you’re crazy.

No, it’s not a joke – financial planning can absolutely be an enjoyable experience. When you are confident with the plan you have in place, you get to enjoy the results. The sense of ownership and control over your own financial destiny can become mildly addictive.

You: Since right now I’m kind turned off by the concept of financial planning, “addictive” seems like a strong word.

Fair enough. But it’s addictive in a good way. For example, I enjoy watching my net worth fluctuate. Like everyone else I know, my net worth goes up or down whenever I check it. When it goes up, I am happy because I am wealthier.

You: Yes, that part is easy to follow. But when it goes down?

When my net worth goes down, I know that–for me–the cause is a drop in the value of my investments. (The other possible cause is that I spent more than I made. But I don’t do that, so I know that, for me, it’s from the results of my investments). Anyway, since I am always only a little ways away from another investment in the stock market, the recent stock price drop which caused my net worth to fall means I will soon be buying more shares at their new, cheaper price.

With my long-term horizon, I am comfortable with the expected hiccups in market performance. And so should you. These fluctuations provide us with a great long-term opportunity to “buy low.” Later on, you’ll learn how to “sell high” without ever having to time the market.

Now see why financial planning can be fun?

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