Every now and then, we all suffer losses, its part of the journey, These losses are quite unavoidable and they contribute in building a thick skin. It could even be argued that the more losses one has the wiser one becomes. However, losses has to stop somewhere, we just can’t keep losing. Otherwise, the continued losses will imply that we’re lacking a fundamental structure; integrity.
To develop something means to evolve and make it better. Financial integrity is less like a tool but more like a character trait that one develops in order to have the ability to stick to one’s financial plan without being deterred by circumstances. There is also the non mental aspect of financial integrity which is basically building up a solid investment portfolio that doesn't wobble with the first signs of financial turmoil.
First, let’s look at the main reason why we lack financial integrity.
Distractions are a big problem and we humans don’t do well with distractions simply because of our short attention span. We tend to ‘close off’ as soon as things get boring and that’s how distractions get a hold of us.
The main reason why most people lack financial integrity is our inability to focus on one thing. It’s like putting an empty bucket below a tap, how long will it take if you don’t remove the bucket and just let it fill up? Now how long will it also take if you keep removing the bucket every second? The difference is huge right? It will take a very long time! That’s how it is with the lack of financial integrity, we jump from one venture to another or from investment to investment looking for the biggest and fastest way instead of waiting it out and build.
Distractions just get you nowhere. Its like a maze you enter and never come out. Multitasking is a myth; one can fully focus on only one thing.
Another way is narrowing down one’s options. When making a financial plan, one can focus on accumulating a certain asset class first instead of diversifying. Diversification is easier with heavy pockets. For the rest of us, well just be spreading ourselves too thin. How does that play into developing financial integrity? Well, the less food on ones plate, the easier it gets to eat and digest it.
Financial integrity is also about understanding the investment(s), the variables involved and how one is going to work with them to achieve the desired goal.
Distractions, just like losses, are unavoidable. However, we can control the way we react to it by not letting ourselves be overly carried away by them. But I guess that’s also easier said than done. Anyone knows a way on how to completely eliminate distractions?
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