Is it time to take “Luck” Out of the Financial Equation?
It finally happened!! You got the promotion you wanted and the salary is better than expected. Congratulations! Must be time to celebrate right? That new handbag has totally been calling to you and you really deserve the splurge! Then you find $50 in a pair of jeans before heading out for the night and think, time to buy myself a lottery ticket!
Feeling like luck is on your side is a big-time confidence boost—but on the downside, it can also cloud your judgement and lead to not-so-hot financial consequences… if you aren’t careful.
As an example, an older Ohio University study found whenever the State’s football team won a game, local lottery ticket sales surged. I’m guessing that even though the fans are obviously into football, they also knew the odds of hitting the jackpot were the same as they had always been. It seems though, that the excitement, even euphoria of the victory on the field, then made them feel as though they could triumph over anything, including turning the win into a financial windfall too.
If you’re more comfortable with footy tipping than an investment on the stock market, evaluate how much you rely on luck versus good money sense.
Obviously, the splurge of a few dollars won’t negatively impact your bottom line over the long term, that’s a given! But jumping into bigger financial decisions—like, finally scoring that renovator’s delight that you’re totally sure you can flip quickly for a profit, just because you’re on a lucky hot streak, certainly can have a much bigger and longer-lasting impact.
Basically, just think things through. Do the due diligence you would on making any investment and thoroughly research the pros and cons. Seek professional help if you need to – investing a few hundred on advice early, can save you the heartache of the loss of tens of thousands later. Remember also, that a professional adviser isn’t clouded by the same emotions you are, and may also have an idea of a few other things you hadn’t thought of.
Sometimes, you can have a win because you were brave enough to finally act instead of coming from a place of fear. But when you’re weighing up that big money decision, seek help ensure you’re not acting out of a misguided, “can’t-lose, I’m on a roll” gambler’s mindset versus a positive, well thought-through plan.
Ask any successful person and they’ll tell you, the harder they work, the luckier they get!