Believe it or not what is standing between you and property investing success could be YOU!
According to leading motivational expert Tony Robbins we’re our own worst enemies in many areas of our lives.
What does he mean by that?
You can invest in the right things, minimise your fees and taxes and even diversify your holdings.
But if you fail to master your own psychology, it’s still possible to fall victim to financial self sabotage.
I’ve written about the psychological tricks our mind plays on us as property investors before.
I explained how without always knowing it, real estate investors are pre-programmed with a range of biases which may cause them to interpret information incorrectly and thus undertake sub-optimal investment decisions.
Anyway…today’s infographic explains this concept well.
You’ll see Tony Robbins believes (and I agree) that 80% of success is psychology and 20% is mechanics.
So let’s look at 6 psychological pitfalls to avoid, and don’t worry if you’ve made some of these errors – we all have – nobody’s perfect!
This infographic is from Tony Robbins using talking points from his #1 Best Selling book Unshakeable: Your Financial Freedom Playbook
Robbins reveals the key psychological limitations of the human brain.
It turns out that these fallible survival instincts have been hardwired into our brains over millions of years, and they become very troublesome when we try to make rational financial decisions.
To overcome these instincts, investors need to adopt simple systems, rules, and procedures that can ensure the decisions around money we make are in our best long-term interest.
- MISTAKE #1: Seeking confirmation of your own beliefs
- MISTAKE #2: Conflating recent events with ongoing trends
- MISTAKE #3: Overconfidence
- MISTAKE #4: Swinging for the Fences
- MISTAKE #5: Staying Home
- MISTAKE #6: Negativity Bias
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