We don't lie just to people we know. We also lies to ourselves.
These are financial lies that we love telling ourselves:
1. I will be greedy when others are fearful and fearful when others will get greedy.
2. I NEVER make emotional decisions.
3. The last 5 years the market has done nothing so in the next 4 years it will double itself -- just as a catch up.
4. Investing is easy.
5. I have a DCF (discounted cash flow) model that tells me exactly why Colgate is a good buy.
6. I am following Peter Lynch's advise. I buy the shares of companies whose products I use. I have been doing a SIP in Jet Airways.
7. I know everything about equity markets in India, Singapore and USA.
8. I know the market is fully priced now... the correction is just around the corner.
9. I know my portfolio returns and total overall asset allocation of my portfolio.
10. I have a brilliant, fail safe, trading algorithm. YOU can NEVER ever go wrong with this tool.
11. I will start my SIP next month. The next month never comes.
12. I will stop doing futures & options -- just let me do this one trade
13. I will top up my term insurance now that I have a new kid (more loans)... .etc.
14. I will start writing accounts diligently so that I know where I am spending MY money.
15. I need not write accounts for expenses -- after all I do not spend irresponsibly EVER
16. I do not need to maintain an account of my investments, except of course as required by law
Want to add your own list to this? Clcik HERE
Illusration: Uttam Ghosh/Rediff.com
