Practical Lessons for Your Financial Life (Collection)

Connected Consequences

Consequences are connected. It can be a hard reality to accept, but it’s one you have to face if you want to succeed with your investments.

Here’s how this works: When consequences are evolving positively, it feels like the wind is at your back. Let’s say you invest in a piece of real estate, and all seems to go well. The value goes up, so you leverage the real estate. You get a variable rate loan so you can do even more with your money. You splurge on a luxurious vacation. Feeling financially confident, you start taking risks in your job, and you send your children to expensive colleges. One after another, the connected consequences of your decisions all seem to be flowing, and the journey feels light and right.

Then, ...