If I only had more, I would be able to take advantage of the growth and passive income opportunities of the market!
But then again, I have to live my life, pay my rent, buy groceries, pay bills, and all the other 'fun' things that people do these days.
How do you know you're investing too much, let alone too much in a single company?
I believe that if you put more then 50% of your income into stocks, you are either crazy, or absolutely driven. Both of these states are very risky, and you can lose control very easily.
I'd like to make it clear that I am currently one of these 'crazy or driven' people.
Some of the things that 'driven' investors may do:
- Take a loan to invest.
- Sell low value objects to secure funds for investment.
- Bypass low-cost opportunities that may enrich their lives in non-financial ways.
- Lower their cost of living to sub-poverty levels to free up funds.
- Take a second job for that 'little bit extra'.
All of these habits are similar to what someone with a substance abuse problem would do to secure funds for their next 'fix'.
Investing is a positive thing. Taking a Tylenol for pain occasionally is also a positive thing. They both improve quality of life.
But if you need to invest, and it drives you like a burning craving in your soul, perhaps it is time to step back and take a look at your plan. Does it really make a difference if you sell the $10 coffee gift card you received for your birthday just to buy one more share of EXE.UN ?
I guarantee you there are a few investors who would say yes.
And I would like to say right now, that there are more important things then having that one more share.
- Go outside.
- Walk to the library, and read a novel.
- Meet for coffee with an old friend.
- Paint a picture.
- Have a family member over for dinner.
Make the most of your life, and enjoy the low-cost activities that are available to you.
After all, that share may eventually help pay for your work-free lifestyle, but it will never bring back the people, places, and experiences that you are able to have today.