Tieing Self worth with Net Worth.
Most people tie their self worth with the Net Worth.
As the bull market rises the stock prices, the net worth also increases thus inflating the self worth.
Once the bull market cools off, thereby resulting into the stock price corrections, the self worth also tumbles along with the Net Worth.
A wrong practice which unfortunately made people take their own lives during 2008 crash because they perceived fall in stock price as fall in their self worth.
Always remember, you are invaluable.
Stock prices do not inflate or deflate your self worth.
Always remember, especially in bull markets, the stocks also go down. You should always consider the actual value of your portfolio at 50-70% discount to the prevailing stock prices. This keeps you at peace & mentally prepared when such rude corrections kick in. As they often do every decade.
Also, it’ll keep that humility in you alive while most people’s egos are at peak.
Usually it’s not the fall in stock prices that hurts, it’s seeing your self worth go down.
This is the Part 3 of Mistakes To Avoid In Bull Market. I’m sure this helps you make wise decisions & reap the maximum of the bull market in a responsible manner.
Here’s the Part 1: Mistakes To Avoid In Bull Market – 1
Here’s the Part 2: Mistakes To Avoid In Bull Market – 2
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