Fear and greed prompt us to make irrational decisions
Many individuals live in perpetual fear about their financial condition. They are afraid to blunder with paying their bills, getting fired, or not having enough money, which would force them to start over. Let’s be honest; many of us fear not measuring up to other people’s expectations, whether family or society.
Then, there is greed. Most individuals have a price; once they get offered a high enough loan, most can’t resist the thought of that “safe” paycheck at the end of the month and all the things they could purchase with it.
These two factors trap these individuals in the pattern of getting up early, hurrying to work, stressing out daily, and working hard on something they often do not like.
Then after a long month, they finally get the paycheck and bills. Each second, day, month, and year of their lives are run by a never-ending cycle of fear and greed. How does the latter manifest? Typically, we are afraid of losing our jobs, and greed shows when we can’t wait any longer to get that paycheck — saving only enough to go on vacations from time to time and forget about the endless, unhappy struggle. Nevertheless, even if we make money, our greed will try to persuade us that it’s still not enough, forcing us to continue the rat race.
⚡️To realize that we are stuck in the rat race, we need to look at our lives from a third-person perspective.
A rat race is a tricky phenomenon. On the one hand, we know what to expect, and no one needs us to make tough (or any) decisions. On the other, this supposed lack of responsibility doesn’t make us happier. We rush to work, scared of being late and getting fired.
The more we give in to the rat race, the more our brain learns that this is our natural behavior to run after something unattainable endlessly. So, we get the education and pass all exams with flying colors. Then go for the job that should pay.
However, this conventional path passed down by our predecessors doesn’t let us experience financial growth.
⚡️Greed only dictates raising our living standards, but it doesn’t teach us how to do it.
Financially ignorant people allow emotions to control their decision-making. The fear of losing money prevents them from investing in assets or stocks because of the risk involved. Greed encourages spending money to improve lifestyle, which is safer than investing in assets. Fear and greed hinder people from becoming wealthy in the long run.
You have to gain financial knowledge to get out of this rat race. To buy assets, you must learn how they differ from liabilities.