What Savvy Investors Can Learn from their Cats
While the ordinary house cat might not be your first pick when thinking of animals to model your investment style after, your favorite furry friend has several qualities that might be helpful to your investment outlook.
Conserve Your Energy
An indoor cat will sleep as much as half the day away. Meanwhile, outdoor cats often spend their days looking for a dry, warm place to catch a few winks.
While you probably can't get away with sleeping that much, the more important lesson is that you don't need to spend your energy chasing every trend or hot financial tip. It can be a warm, comfortable feeling to have a financial strategy that allows you to relax and only take on critical information.
Choose Your People Carefully
Cats are selective about the humans they befriend. They want someone who feeds them regularly, gives them a warm and comfortable home, and lets them have their privacy.
Your financial professional may be able to provide a similar element of comfort. The objective is to assist you in meeting your financial goals. This might come in the form of providing guidance on big purchases, offering tax strategies, or offering day-to-day financial assistance like paying bills Your HCM advisor is here to protect you from danger—in cat terms, that might be guiding you away from investments that might figuratively trap you behind the refrigerator.
Enjoy a Diverse Diet
Cats are natural hunters. Left on their own, they seek out birds, fish, and rodents.
Eating and investing are two very different activities, but diversity can be an excellent strategy for both. Your HCM advisment team will likely want you to look at several avenues for your investments, and coach you to notplace all of your eggs in one basket. Diversification makes great financial sense.
Stay Focused
If you play with your cat, you've likely noticed that they possess incredibly sharp focus. When the catnip mouse bounces across the carpet or the red dot from your laser pointer dances across the wall, there's nothing that will distract their attention.
It's a good idea to maintain a similar focus on your financial strategy, as developed by you and your trusted financial professional. The distractions from this strategy might be bells and whistles from the news, opportunities that aren't all they seem, and your fears and anxieties about investing. Think of the objectives of your financial strategy as your red dot. Stay locked on with the same ferocity as your pet.
Look Before You Leap
From time to time, you need to make changes. When your cat needs a moment of privacy (usually for a nap), they may leap onto a high shelf or on top of a tall piece of furniture. Have you ever watched your cat think through such a leap? As amusing as it can be to witness, your cat is thinking it through carefully.
These times may arrive for your financial strategy, as well. Careful consideration before significant steps and running your plan past your HCM advisor is always a good idea.