Hey friends,
Finance is something I don’t discuss too often, but it’s one of my many interests. That’s because you can’t understand money without understanding behavior, and human nature fascinates me to no end.
If you follow the markets at all, you’re aware of the wild ride that people are taking these days. Excessive risk is a selling point rather than a deterrent, and expectations are either “I lose everything” or “I gain my dreams.”
In today’s post, I want to discuss speculation, and the costs it incurs on the way we think. Because while you might walk away with a nice monetary gain, the mental tax on that gain simply may not be worth it.
Let’s dive right in.
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A Thought I've Been Pondering
Money has been a recurring theme in my consulting sessions lately. And the general question we’ve been exploring is, “How do I shift my relationship with money so I can be more rational about it?”
The thing about money is that it’s less of a rationality issue and more of a storytelling one. You have to first pinpoint the things you value, and then see how money reinforces that narrative. For example, if stability is of utmost importance, then a predictable cadence of income is what’s optimal. But if freedom is the grand narrative, then determining if you already have enough is the better lens.
With money, there is no objective view of what’s rational and what’s not. There are only the stories you tell yourself, and which ones feel the most compelling.
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An Illustrated Insight
This is a good time to reintroduce one of my frameworks: The Money Spectrum. Every now and then, I take a look at this to remind myself of where I’m at, and to understand where I want to be.
At both ends of the spectrum, money is a blinding force that sweeps you up entirely. The sweet spot is somewhere near the middle, and this reminds me to stay in this phase if I happen to occupy it.
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A Brief Parting Question
What would it mean for you to have enough? Would it be a net worth goal, a tangible thing (like a house), recognition from others, or something else entirely?
I realize how subjective the word “enough” is, so I’d love to hear how you internalize it. Perhaps it’ll help me better understand what it means to me as well.
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As always, hit reply to share any thoughts, to respond to the parting question, or to simply say hello. I love hearing from you.
Thanks for reading, and feel free to share this email with anyone who might enjoy it. Have a great rest of your week!
-Lawrence
P.S. Thanks to all the lovely people who support the blog on Patreon! We have an official patron hangout scheduled for this Saturday, the 29th, and I've included all the details here. Become a part of the patron community to join in on the fun, and to get access to exclusive reflections, AMAs, and more.
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