Don’t be greedy…it works against you
The more you love money, the less it appears to love you back.
A new study found that nearly 60% of investors who score high on a “love of money” scale actually have bad financial outcomes, according to State Street’s Center for Applied Research, which surveyed 3,000 retail investors across the globe.
“The more that people love money, the more money they lose,” says Suzanne Duncan, head of global research at State Street. Money lovers “are very much susceptible to instant gratification effects — short termism. They very much want to have money now.”
State Street also found the opposite is true: Those who love money least make better investment decisions.
Money lovers are less likely to prioritize saving or contribute to their retirement plans. They tend to buy high and sell low. When surveyed, they answered that they would rather have $1,000 now than wait five years and earn $1,900.continue reading »