OPINION:
Each week the NZ Herald's Cooking the Books podcast tackles a different money problem. Today, it's keeping emotion in check to become a better investor. Hosted by Frances Cook.
Listen to the Cooking the Books podcast here or watch the interview above.
Emotions and money are like petrol and fire. Try not to mix them if you can, because it's likely you won't enjoy the result.
So while I've loved seeing more people paying attention to their money in the past year, and particularly the fantastic surge in people who are interested in investing, I have found the emotions that are clearly also in the mix worrying.
Strategies abound for getting rich quickly, hyped stocks are spread through online forums, and for every overnight winner there are 10 losers left in their wake, carrying the can.
The reaction to this in some quarters has been for people to warn that the sharemarket is like a casino, and that if you dabble, you should prepare to get burned.
Well that's just not true either.
Shares are a proven wealth-building strategy, it's just that you do need a strategy as you get started.
Getting your emotions under control is part of that strategy for every single one of us, whether that's greed, fear, or FOMO.
In the latest podcast I talked to AUT senior lecturer in finance Dr Ayesha Scott
For the interview, watch the video above, or listen to the podcast.
• If you have a question about this podcast, or question you'd like answered in the next one, come and talk to me about it. I'm on Facebook here, Instagram here and Twitter here.
• Listen to the full interview on the Cooking the Books podcast. You can find new episodes in the Herald, or subscribe on iHeartRadio, Apple podcasts app, or Spotify.
'Debt becomes more like a rent payment that people get so used to paying.'