Bridgewater Associates founder Raymond Thomas Dalio was able to watch an abridged animated presentation of his book Principles, narrated by him. The visuals were refreshing, the content engaging and good, and it made me think, “What can I apply here to my personal finances?”
He cares about reality. He encourages people to think for themselves what is true for them. In the field of personal finance, this translates into our own personal goals. We have to be honest with ourselves about what we really need and what will satisfy us. Too often, we lose sight of what is really important to us and get sidetracked by what others see. It can mean spending endlessly.The lockdown period two years ago gave us an opportunity to think about what really matters to us. I was able to use these important things as my compass as I navigated my financial journey.
Another topic he discussed was his belief that having truth as an essential foundation produces good results. Based on the first idea. Now we are dealing with the facts around us. In personal finance, this means knowing objective information about your financial situation. We don’t have to hide our actual financial situation. Because this just makes our financial plans go to waste. Having a solid financial foundation means having accurate information about cash flows, balance sheets and life risk. Being able to address and manage these three objectively provides a great foundation from which to step before taking further steps to pursue your financial goals.
Dalios’ presentation also mentions the concept of time moving forward, and you should approach time in the best way you see fit. In personal finance we are usually in a paradigm where plans are rigid and our journey is a rigid straight path to our goals. You have to remember that you need to be able to make the necessary adjustments to your financial plan depending on the situation. You can do this by regularly reviewing your financial plan to incorporate any life or career changes.
In my opinion, the most important point he discusses in the animated video is the formula that pain, coupled with reflection, leads to progress. He has said that he was on the verge of bankruptcy as a turning point not only in his career, but in his life. It’s perfectly okay to feel bad at first, but what you need to remember is that setbacks are temporary and can be overcome eventually. It is important for us to treat these setbacks as learning experiences and move forward toward our goals. Learning from past mistakes can help us prepare for similar problems in the future, even if we cannot prevent them from happening again. will be
Being self-aware, treating facts and risks objectively, being flexible, and having a perspective to reflect on past mistakes can help make financial planning more viable. is not just about having the right numbers, but more importantly, having the right mindset.
John Hero Salvador is a Registered Financial Planner at RFP Philippines. For more information on our investment plans, please join us at the 98th RFP program in October 2022.To register, please contact us by email [email protected] Or contact us at 0917-6248110.