DUFFMONEY mindset is about having the right mindset to invest. Whether it is in property, stocks and shares or crypto assets. Or anything that you choose to invest in. It might be in a new business (a new start-up) for example.
The investing strategy for DUFFMONEY is long-term buy and hold. Buy and hold with property, index investing and crypto assets.
Prior to 2021, I didn’t really take crypto assets seriously. I saw it as a risky asset class and my understanding was very limited. But the more I get my head into understanding the technology (blockchain, smart contracts, developers etc), the more bullish I’m becoming.
Up until 2018, I didn’t have the right mindset. It took me 36 years to finally get a grip and look at getting some financial literacy. My personal finances were a joke, and I didn’t have the discipline or knowledge to invest. I started with mindset. Then I put a plan in-place and got some much-needed financial literacy. With experience (19 years as an investor) and my newfound knowledge, I am now heading towards Financial Independence.
Not managing emotions
A big factor in not having the right mindset, was a total lack of control of my emotions. This goes back to when I was a kid. A very stressed kid.
A bad example of me being a stress head was when the snooker world championships didn’t turn out the way I wanted. Jimmy White was my favourite player at the time and was playing Stephen Hendry in the final. This must have been when I was about 8 or 9 years of age.
White took a commanding lead but lost the final as Hendry came back strong. This didn’t go down well with angry Pete. I took myself upstairs and smashed my room up.
After calming down, I wiped the tears of frustration away. I was devastated as I had ripped all my posters from the wall. There was a hole in the wardrobe door, and I had broken my Scalextric set. Not to mention the fact I was then grounded for 2 weeks.
As the years went by, I managed to grow up and the temper tantrums stopped. Although my stress levels were ok on the whole, I always seemed to let it creep back into my life in certain situations.
There are a few other examples of me not managing my emotions. But there are ways to improve how you manage your emotions. As you can see from my 1st book (FI Money: Learn the hard way, teach the easy way), I have been heavily influenced by Steve Peters and his excellent book, Chimp Paradox.
The right mindset
By the time 2018 came along, I was ready to be happy and to improve my mindset. It started with Tony Robbins videos on YouTube. I then moved on to a few books, more YouTube videos and podcasts. Basically, anything I could absorb to improve my mindset.
This led to me learning about goal setting. And it also led to some much-needed financial literacy.
I now knew what I wanted and had goals to aim for. And I started to understand my relationship with money. How I can get obsessive with single shares or crypto assets. And how long-term buy and hold is what suits me.
Part of what Tony Robbins was saying was about investing. How that it is possible to invest in the ups and downs of the markets. But to get this into your head, you need to work on your mindset and your financial literacy.
If you invest in an index fund and there is a market crash like 2008/2009, it is time to go shopping in the sales. Just keep on investing every month and eventually the market will revert to the mean (or the average).
What most people do is panic. They sell their shares when markets are heading down. This means you are crystalising your losses. And then buy back in when the markets are heading up. For more detailed information about investing concepts look into Tony Robbins and some of his excellent books (e.g. Money Master the Game). The markets are impossible to time and that’s why investors do dollar cost averaging. And this is when you invest x amount each month despite the inevitable ups and downs of the markets.
What to do
Mindset … Goals written down … Financial literacy … spend less than you earn and invest the rest … invest and head towards financial independence. Personal finance and investing are massively important and it all starts with mindset and understanding your relationship with money.
Over the last few years, I have been investing in index funds. My fund is a Vanguard fund and has performed relatively well over the last 2 years.
With the right investor mindset and financial literacy, I finally understand my relationship with money. And I know that index investing, and passive investing is what suits me.
This has helped me to just set and forget with my index funds. I checked them after 1 year and again after the second year. Much better than every 5 mins with single shares.
All I’m saying is look into your relationship with money. Start with your mindset and get them goals written down. Then you can head towards financial independence (FI). FI is about having the freedom to live life on your terms.
Book of the week: Money Master The Game, by Tony Robbins. This book is about financial freedom. If you are disciplined and dedicated, financial freedom is possible. With diversified investments and expert advice, you can head towards reaching your financial goals.
For a hard copy visit the excellent Imagined Things Bookshop: Imagined Things.