Investing Entertainment: Bad Idea

One of the biggest mistakes we make with our money is confusing investing with entertainment.

Somewhere along the line, investing has become one of America’s favorite spectator sports.

On social media, in your newsfeed, or at the dentist’s office—it seems like everywhere you look, someone is talking about finding the next hot stock, mutual fund, or alternative investment—from cryptocurrency and tech funds to startups and beyond.

Problem is, smart investing actually has very little to do with the kind of bold, swift actions people tend to yell about on the financial pornography networks. Smart investing is about as exciting as watching grass grow.

The idea that investing is fun and entertaining can lead us to make costly mistakes. Despite knowing at some level that market timing, stock picking, and day trading are hazardous to our wealth, so many of us end up engaging in that kind of behavior.

SURE, INVESTING CAN BE FUN. BUT BEAR MARKETS SERVE AS A PAINFUL REMINDER THAT IT'S NOT ALWAYS FUN. THIS ISN'T MONOPOLY WE'RE PLAYING. IT'S REAL LIFE. WE'RE DEALING WITH REAL MONEY AND REAL GOALS. AND BY CONFUSING INVESTING AND ENTERTAINMENT, YOU ALMOST ALWAYS END UP WITH BAD RESULTS.

At some point, we need to take a deep breath and ask ourselves a question: Am I investing to meet my most important financial goals, or am I investing as a form of entertainment?

Hint: For almost all of us, it can’t be both.