Author Topic: Market Performance vs. Motivation  (Read 3336 times)

2Birds1Stone

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Market Performance vs. Motivation
« on: January 25, 2016, 05:40:47 PM »
I have a hard time with motivation to save/invest when the market tanks.....let me elaborate.......I tend to blow $$ on frivolous things when I am seeing 4 or 5 digit losses to my 'stache.

Does anyone else see market performance influencing their spending habits?

Retire-Canada

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Re: Market Performance vs. Motivation
« Reply #1 on: January 25, 2016, 05:47:14 PM »
I have a hard time with motivation to save/invest when the market tanks.....let me elaborate.......I tend to blow $$ on frivolous things when I am seeing 4 or 5 digit losses to my 'stache.

Does anyone else see market performance influencing their spending habits?


Yes. With markets dropping I'm super motivated to save extra and invest. Now is the time it's easier for me not to spend money on any non-essentials.

dividendman

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Re: Market Performance vs. Motivation
« Reply #2 on: January 25, 2016, 05:50:20 PM »
I agree. I am less motivated when it surges than when it tanks. When it surges it's like "fuck, I could have bought more shit just yesterday if I had more saved!". When it tanks it's like "woot, let me try to scrounge together some cash to jam into the market."

Heckler

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Re: Market Performance vs. Motivation
« Reply #3 on: January 25, 2016, 06:04:05 PM »
Come on, Feb 4!  I need to redirect these mortgage payments to the bear!!

whodidntante

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Re: Market Performance vs. Motivation
« Reply #4 on: January 25, 2016, 09:56:59 PM »
I tend to buy more during a slump, and I have been.  I've finally bought all that Eurozone stock I've always wanted.  LOL

Adventine

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Re: Market Performance vs. Motivation
« Reply #5 on: January 25, 2016, 10:20:11 PM »
Yeah, I feel a bit bad when the market tanks and I see my net worth go down, but since I've automated my monthly investment contributions, how I feel about the market doesn't necessarily translate into spending more or less money. Whether or not the market does badly, I'm automatically investing the same amount every month, and have the same amount of money left over to spend.

Kalergie

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Re: Market Performance vs. Motivation
« Reply #6 on: January 26, 2016, 12:21:25 AM »
It's only human to think that way. You have to switch off that stupid human emotion and keep going like a machine. Think like this: If you were happy to buy something (anything actually, food, cars, going out, or ETFs) when it was 10% pricier a few weeks ago then you should be overjoyed now that you get the same things for a bargain.

mrpercentage

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Re: Market Performance vs. Motivation
« Reply #7 on: January 26, 2016, 01:11:25 AM »
Yeah a little. You shouldn't have all of your eggs in one basket and that includes investing. That way when the market tanks you can say well I have the house... the _____ and the ______. Diversify for better returns in life satisfaction. As long as you aren't pulling it out of the market you are fine. I just had a death in the family. You don't know when you are going to go, and who wants to be the guy sacrificed everything the die early with a big number in an account. Sounds foolish but we are not imortal. You know what everyone says about the janitor who died with 8.5 million in stocks when he was 80? They say what a waste.

I don't plan of fully retiring so I am not exactly on the MMM plan. Plan, save, budget, but be good to yourself



arebelspy

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Re: Market Performance vs. Motivation
« Reply #8 on: January 26, 2016, 05:21:56 AM »
I have a hard time with motivation to save/invest when the market tanks.....let me elaborate.......I tend to blow $$ on frivolous things when I am seeing 4 or 5 digit losses to my 'stache.

Does anyone else see market performance influencing their spending habits?

Opposite for me.. market tanks and I want to shove more money in there, to buy shares cheap.

When it goes up and up, and my money is buying less shares (and it goes up in a month more than I make in a year), it's a lot less motivating to contribute, because my contribution is so paltry compared to the gains.

Either way, I don't let it affect me, but the motivation I feel is the opposite of yours.  :)
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Rubic

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Re: Market Performance vs. Motivation
« Reply #9 on: January 26, 2016, 11:52:23 AM »
I have a hard time with motivation to save/invest when the market tanks.....let me elaborate.......I tend to blow $$ on frivolous things when I am seeing 4 or 5 digit losses to my 'stache.

That's irrational behavior.  Your financial status would be better served by figuring out a way to mitigate it.

Quote
Does anyone else see market performance influencing their spending habits?

When stuff gets cheaper, I tend to stock up.

The guidance is simple -- like losing weight -- but that doesn't mean it's easy.  My sincere best wishes to you in your future investment endeavors.

2Birds1Stone

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Re: Market Performance vs. Motivation
« Reply #10 on: January 26, 2016, 03:59:13 PM »
I have a hard time with motivation to save/invest when the market tanks.....let me elaborate.......I tend to blow $$ on frivolous things when I am seeing 4 or 5 digit losses to my 'stache.

Does anyone else see market performance influencing their spending habits?

Opposite for me.. market tanks and I want to shove more money in there, to buy shares cheap.

When it goes up and up, and my money is buying less shares (and it goes up in a month more than I make in a year), it's a lot less motivating to contribute, because my contribution is so paltry compared to the gains.

Either way, I don't let it affect me, but the motivation I feel is the opposite of yours.  :)

Don't get me wrong! Rational me understand the concept of purchasing cheaper shares etc. Emotional me is like......net worth dropped $5k this week, whats a $50 dinner out with the SO really mean in the scheme of things.

Despite my "flawed" behavior I still managed to hit a 75% savings rate for 2015. So I guess it's not REALLY hindering my FI progress

I have a hard time with motivation to save/invest when the market tanks.....let me elaborate.......I tend to blow $$ on frivolous things when I am seeing 4 or 5 digit losses to my 'stache.

That's irrational behavior.  Your financial status would be better served by figuring out a way to mitigate it.

Quote
Does anyone else see market performance influencing their spending habits?

When stuff gets cheaper, I tend to stock up.

The guidance is simple -- like losing weight -- but that doesn't mean it's easy.  My sincere best wishes to you in your future investment endeavors.


Totally irrational behavior lol!!

I appreciate everyone's thoughts/comments on this topic.