Most of us realize that saving and investing are two very important things to do for our financial health. But, did you know that these activities are extremely important for our mental and emotional health as well?
The peace of mind we feel when we know we have money for emergencies and to live on when we're older is worth more than anything you could ever buy or own. Many people understand this but believe they can't save or invest because they either don't have enough money left over after paying the bills, or they don't think they know how. As you learned in the Saving and Investing Head section, saving and investing your money is easier than you might think, and doing so does not mean you can't spend any money on pleasurable activities.
To be successful at saving and investing, however, you do need to learn how to practice self-discipline. You also need to learn how to delay gratification – or wait to get or do something you want. When it comes to investing, it is also helpful for you to know how tolerant you are of taking risks.
Some of you may be saying to yourselves, "this is going to be impossible, why even bother." That is an irrational thought (iR). This is a good opportunity to practice disputing an irrational thought. We will teach you in this section how to better practice self-discipline and delay gratification and how to understand your emotions in relation to investing when risk is involved.
Here's an outline of what we will cover in this course:
- Review Saving and Investing Head Section
- Saving and Emotions
- What is self-discipline
- How to develop self-discipline
- Practicing Delayed Gratification
- What does delaying gratification mean
- Delaying gratification while still having pleasure in our lives
- Emotional Barriers to Saving and Investing
- Risk taking behavior and risk tolerance
- Taking financial risks
- Lack of focus on the Future
- Lack of Financial Knowledge
- Choice Overload