This sketch hangs in our office, and it serves as a reminder that our behavior carries greater significance than our investment strategy. This brings up the question, “Why is our behavior so difficult to regulate when it comes to money?”

While the response to this question varies from person to person, when we engage in conversations with our clients about their deeply rooted values, a recurring theme often emerges: money symbolizes a sense of security.

When we feel confident that our finances are well-organized and aligned with our personal goals and values, it can instill a sense of contentment, allowing us to make rational, long-term decisions. This is a mindset from which we can leverage investor behavior: squared. Making financial decisions from a place of strength allows us to stay focused on the decisions that will propel us further.

However, we must be cautious about where we seek security within our strategy. A financial plan is a journey, and if our security is based on only on a number (net worth, rate of return, investable assets, income), we are attaching ourselves to a fleeting factor! Instead, our security needs to be grounded in the presence of a plan that reflects our values, a decision-making framework that guides us regardless of the economic landscape, and the recourses required to take proactive steps that keep us moving forward regardless of the circumstances.

Security comes from a confident embrace of the unknown journey ahead, which requires the opposite of security, courage! Morgan Housel puts this succinctly:

“The proper financial mindset is to be scared enough to save for the short run (Security) and brave enough to invest for the long run (Courage).”

How can you utilize these concepts to elevate your level of confidence?