Mind Over Money
Our financial thoughts and behaviors are often at odds with our goals. Here’s how to bring them into better alignment.
Have you ever spent money you should have saved? Sold an investment you should have kept? Or made other decisions not in your best financial interests?
You aren’t alone.
“... take a step back and think about your values when it comes to money.”
We can’t always change our most deep-rooted behaviors, but we can understand them, manage them and build our financial plans around them. “First, take a step back and think about your values when it comes to money,” suggests Liersch. “What matters most to you? Are your behaviors consistent with those values? Are they moving you closer to your goals? If not, even small changes can make a big difference.”
Compounding is confounding: we don’t grasp how money grows
When asked how much $400 monthly investments would grow over 40 years at 10% annual returns, the average person estimated more than $2 million less than actual growth.
The coin flip decision: which would you choose?
Heads you win, tails you lose. Would you take the risk or avoid it?
*The Customized Financial Analysis referenced is a tool that provides an additional resource in the evaluation of the potential risks and returns of investment choices. The projections or other information generated by the Customized Financial Analysis regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
The information within this document is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult the appropriate financial professional.
JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal and accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction.
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