36 | Investments are a Distraction

Wait a second…what?!?

We just did a deep dive on how to invest and now it's a "distraction"...are you kidding me?

Nope.

Once we've cared for the basics and are prepared to behave, there isn't much else we can do when it comes to investing.

Whether it's the fact that there are infinite investment options that all converge into a similar outcome over long periods of time or...

The fact that our lived experience with money has so much more to do with how we generate income, how we spend it, and how we set it aside, or...

The fact that most details of investing are like your doctor reading you the footnotes of the research papers that led them to arrive at their proposed treatment plan.

Investments are an enormous distraction.

They are a distraction behind-the-scenes if we waste time with their administration.

They are a distraction in conversation the moment they have gone over the head of the least knowledgeable (or interested!) person in the room.

They are a distraction when we pretend that any tactical tweak is going to change our relationship with money.

The reality is that the numbers side of financial well being is mostly covered by three core themes...

At all times, do/will I have sufficient cash (blue) on hand?

On average, does/will my income (purple) exceed my spending (red)?

Over time, am I aware of how my spending (red) expectations compare to what I am setting aside (blue/gray/yellow)?

Beyond these basics, investments (and any other tactical details for that matter!) run the risk of completely distracting us from the story that we're writing with our use of money.

Additional Reading

Retirement Success Financial Independence: A Surprising Look into the Factors that Drive Positive Outcomes from the ASPPA Journal
Yes, I crossed out "Retirement Success" - the principle is the same regardless of the goal - see the first paragraph of Page 5 and the related visual

Market High Soup For The Soul by Jared Korver

Your Complete Financial Life by Carl Richards
Not a solicitation - just a powerful visual