Financial planning is a continuous job, requiring careful decisions in an often complex market. Most of us could use a little inspiration from time to time.
That inspiration can take many forms. Some may enjoy reviewing charts or graphs, while others may be deeply affected by the successes and tragedies of friends and colleagues. At times, wakeup calls can come from the words of others. With that in mind, we’ve compiled three quotes about finances that may help you stay on track.
“The Stock Market is designed to transfer money from the Active to the Patient.”
From noted investor Warren Buffett, this quote illustrates the fact that investors tend to underperform when they trade frequently. Not only do they pay high commissions and face short-term capital gains tax rates, they are also often influenced by knee-jerk reactions to market events, which can hurt performance. A long-term investing strategy is the best. Look for stocks you can hold onto for many years, through market ups and downs.
“Every time you borrow money, you’re robbing your future self.”
From Nathan W. Morris, a personal finance expert and noted author, this quote suggests that when you take on debt (via a home equity loan or credit card balance, for example), you’re risking your future financial security. When you carry debt, you’re paying interest with money that could have gone toward retirement savings or other important financial goals.
“When buying shares, ask yourself, would you buy the whole company?”
From Australian entrepreneur, investor, investment advisor, and stockbroker Rene Rivkin, this quote conveys the idea that when you buy a stock, you’re buying a portion of a company. You thus become a part owner of the company, so it’s worth considering how comfortable you would be owning the entire company. Do you have confidence in its future? Concentrate your dollars on your best ideas, or the best ideas of your financial advisors.