The Financial Therapist: How To Keep Emotions Out of Investment Decisions

Welcome back to Making Bank. On today’s episode, we have Brad Barrett, who is the Managing Director of Partner at One Capital Management, a private wealth advisory firm managing over 5 billion in assets with nearly over 20 years of experience in the financial service industry.

He is passionate about finding new ways to educate investors. He’s having the heart of a teacher. He shares his knowledge and his experience through his weekly YouTube podcast and radio show, Make Your Money Matter. His show aims to change the way people think about financial advice so they can make better decisions with their money.

Don’t miss this episode of Making Bank, with Brad Berrett.

(3:11) Background
Brad had early experience of a failure of a company through his father and this became the reason he vowed himself to learn everything there is to learn about money so he will not make the same mistakes. He started his practice as an advisor when he was in college, getting his economics degree and then he joined One Capital Management.

(5:28) How To Look At Money
Psychology is one of the things that plays into how we look at money. If you’re in a business there are two Ds that are very important. Discipline and Discernment. If you hold these true, you’ll be fine and try not to look over the fence too much. Comparison is the thief of joy. You don’t want to get trapped up in those kinds of mental constraints.

(7:49) Creating Vs Consuming
Successful people are more interested in the process rather than the end product. However, most of us usually do something in order to have the ability to then consume something which is not wrong, but if you can fall in love with the process rather than just concentrating on the ultimate goal, you will soon find yourself to be more successful than you were with the previous ideology.

(11:37) What To Invest In
Emotions play a lot in this, but be careful what the mind tells you. The mind’s telling you that the market is going down, so you need to fear. There’s definitely some positions that have come down that likely aren’t fundamentally true. it could be anything. A good advisor is going to look and find under the hood, because some of the positions that are down, but aren’t down are good buys because there are those.

(16:03) Money And Emotions
Emotions play a huge role in anything where money is involved. So, if you’re feeling down about something you’ve got in your life, a concept or a topic about money will likely coerce you into making decisions that you wouldn’t have normally done before. And this happens in the form of buying an investment that we haven’t really researched, or pulling out of a market because of fear that’s setting in.

(20:22) Discipline
Discipline is always better than motivation. It’s important that you put some tools in place to help you in your business because it is very easy to get motivated for a time being but it takes discipline to actually commit to whatever plan you had going. So the best way to do this is by having a co-pilot. Learn to have a partner so they can be the strength to your weaknesses and help you be disciplined.

(24:32) Planning
Learn to plan ahead of time. Especially for situations you do not know. Because in business, anything can happen. It is always unpredictable and uncertain. So, in order to escape a complete failure, always be prepared for whatever that will come your way. Plan ahead of time so that you can be ready for any crisis that may fall on your business.

(26:44) Wrong & Right Ways To Invest
The wrong way to invest is without doing your research, without doing your due diligence, without talking with someone about it. The right way to invest is having discipline. Don’t have a motivational crash. Make sure you recognize the difference between discipline and motivation. Anyone can be motivated but only those who are disciplined will make it stick.

(28:42) Recession
Recession is there whether or not people believe in it. The point is, invest through it. Stay disciplined, dollar cost average, where you can live within your means and you’ll be fine.

Links:
https://linktr.ee/makeyourmoneymatter
Instagram: @makeyourmoneymatter @brad.barrett