Inner Wealth: The Often Overlooked Link Between Self-Awareness and Financial Success
Discover how understanding yourself can be your greatest asset in the world of investing.
A warm hello to all new readers! I’m glad you are on board.
New here? I’m Michael and on a mission to make beating the stock market as easy for you as choosing your favorite ice cream. I write an algorithm that does exactly that.
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Have you ever asked yourself,
What does it truly take to achieve success and fulfillment?
This question echoed a lot in my mind, usually when I’ve felt cornered or not where I wanted to be. If you are a little like me, it might also lead you down the path of self-discovery. Along these paths, I’ve gathered a lot of insights about myself.
Some are useful, others not. Here is a little snippet.
I know my strengths and weaknesses, core values, and the impact my family has had on me.
I’ve decoded my leadership style, confronted my fears, and understood them to manage them.
I’ve delved into the depths of my Facet5 and PCM Profile and what have you.
Each little test gave me insights about my self and how other people might struggle too.
And yet, there have been moments when I still wrestled to stay on course.
In fact, we all struggle at some point in our lives.
But what does this self-exploration have to do with investing?
Everything I’ve realized.
However, to grasp its impact, we need to zoom out and see the whole picture.
My aim with this article is to illuminate the hidden corners because they can cost us dearly – in life and especially in investing.
The crux of it is this:
After a certain point and without self-knowledge, you will fail or at least reach a glass ceiling.
Sure, there are those who strike it lucky. I’m not talking about them, I’m talking about the we’s and us.
We often know what is best for us, and yet, still, we struggle
We make wrong investment decisions or lose sight of our goals or dreams.
Why is that?
Simply put, we all have blind spots. But even that. What does that mean?
Let’s get to the bottom of it.
Like many, I’ve stumbled upon frameworks - designed to improve our lives. Initially, a lot of them resonated with me.
For example, according to this model, there are six crucial steps to success:
CLARITY - about your goals
ENERGY - to channel towards these goals
NECESSITY – understanding your ‘why’
PRODUCTIVITY – smart ways to achieve your goals without burning out
INFLUENCE – the ability to lead both yourself and others
COURAGE – to boldly take action
Sounds promising, right?
But let’s be real.
Even armed with these six steps, there’s no bulletproof guarantee of success, because the devil is, as always, hidden in the details no one talks about.
The six steps offer an extra layer to your awareness, that’s for sure, yet they miss a crucial element. Or to put it differently.
The crucial point is hidden between the lines of it.
It took me years to understand the real reason why we lose momentum and start slipping.
Why? Because we adapt.
The thrill of the first iPhone launch faded compared to the last release, right? Similarly, our motives and clarity can get blurred again and they lose their punch as well.
Many of us have tried to get fitter, lose weight, or thrive in investing. Regardless of the goal, we set rules for ourselves to achieve our goals. Rules offer structure and a sense of security.
We create investment checklists and adapt them as we learn. It’s a cycle that seemingly propels us towards our goals, right?
Until our rulebook starts feeling like a prison. The burden of sticking to an exhaustive checklist saps our energy and breeds stress. Our brain, acting like a tyrant, insists we stick to these self-imposed regulations. Before we know it, we’re trapped by our own rules, (unconsciously) searching for a secret escape. An exception to the rules might offer quick relief, but it doesn’t address the root cause. The cycle repeats, stress escalates, and we find ourselves in a pool full of frustration.
Initially, these rules and checklists helped. But over time, they transform and our internal voice with it - turning into a relentless dictator that refuses to show empathy.
In a moment of overwhelming pressure, we slip—skipping a workout or overlooking a step in our investment checklist. If luck is on our side, there are no immediate consequences, and the brief respite feels freeing. However, we all know, this relief is short-lived. The pressure from our unaltered, stringent rules returns, often with increased intensity, leading us into a vicious cycle of stress and relief.
A question pops up:
Should we introduce new rules, adjust the existing ones, or abandon them altogether? Most can’t decide, and this indecision only adds to our stress, gradually dragging us into a deeper state of unhappiness.
Enough about problems.
Let’s turn to solutions
If you, too, are feeling stressed after reading this, it’s a good sign - first, you are still human. Second, this is a juncture and we can take a break to pause and reflect.
Relax. Start by asking when the stress first began. Can you pinpoint the exact moment or trigger?
Often, it’s very subtle. A thought or internal dialogue that sparked this stress. Experts call this phenomenon “scripting.” It’s a process where our internal monologue runs like an automated script, influencing our thoughts, feelings, and, ultimately, our actions. We start with positive intentions and constructive rules in the beginning, but over time, it subtly shifts our internal dialogue, sometimes leading us down a path of negativity without our conscious realization.
Imagine how, for some, a single negative interaction in traffic can spiral into a series of angry outbursts at other drivers. This reaction is a manifestation of scripting—our internal dialogue runs on auto-pilot, turning a single stimulus into a pattern of negativity. Recognizing and understanding these internal scripts is the first step toward breaking free.
Victor Frankl encapsulated this beautifully when he said,
“Between stimulus and response, there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom.”
Typically, we react like this: stimulus → feeling → response.
But if we dissect it further, we realize it’s actually
stimulus → feeling → internal dialogue → response.
To really make a shift in how things turn out, we can dig even deeper.
It usually starts with something triggering us (the stimulus), which then stirs up feelings/emotions. Next comes our inner chat—sometimes it’s a pep talk, other times it’s a bit of a put-down.
And here’s where we can turn things around.
Instead of letting that inner chatter have the last word, we take a moment to think it over. We ask ourselves, “Is this little voice helping me, or is it just throwing a wrench into the works? Is this true, or is this just my hurt ego talking? Does that matter in five years?”
First of all, we slow down. And depending on the answer, we might decide to tweak that initial thought a bit and then react in a fresh, more constructive way.
Yes, it sounds like a hefty task, and frankly, in the beginning, it is. It feels overwhelming at the moment when it happens because you must stop that auto-pilot program first. That’s the hardest part at the beginning.
Old habits and ways of thinking are stubborn; they didn’t just pop up overnight. So naturally, nudging them in a new direction is going to take some time and a fair bit of elbow grease. So take your time, it’s ok.
Here’s the good part: the more you practice this, the smoother it gets. After a while, it’s like your brain does it on autopilot. You hit a bump (that’s the stimulus), you feel something about it, and before you know it, you’ve already sorted through your feelings and are responding in a way that’s better for you, which leads to better decisions.
Conclusion
There you have it, we’ve come full circle. Catching ourselves at the hot moment, having a quick, friendly chat with our inner selves (often still a little kid), and steering our reactions to a more positive path. It’s not a walk in the park, but the more we do it, the more it becomes second nature. It takes time and conscious effort — just like investing. (Watch politicians at hearings, they’ve perfected it in their own way.)
So, if your investment checklist feels burdensome, don’t despise it or berate yourself for deviating. Adjust it. Reevaluate the necessity of each step. Simplify where you can. Remember the initial good intentions behind your rules – you set them with your best interest in mind. Not to hurt you.
Here’s why that’s so important.
No set of rules or guidelines are set up for success if your internal dialogue is skewed.
Pay attention to how you talk to yourself and how you think about yourself. If someone else were listening to your self-dialogue, would they offer criticism or support? Next time when you slip, be gentle with yourself. Rethink your initial intentions and assess your internal narrative (without judgment) before hastily imposing even stricter rules.
Approach your struggles with the same encouragement you’d offer a little child learning to walk. Our journeys all have ups and downs. In the future, you'll look back and realize that every step was worth it because you can learn a lesson from every misstep if you tune your inner talk in the right direction. Settling the relationship with yourself will make your decisions in what to invest more certain, and you will feel better because you have fixed an important part of your life.
If you master this, you become honest with yourself. It sets you up for the closest, most important, and best friendship we have - the one with ourselves.
If you think somebody should read this, share it, and make them happy.
There are now 218 StockStars in the house. That’s beyond amazing! I feel grateful for every single one of you. Thank you for being on my side. It’s … I have no words for that besides - thank you.
Progress
I took a day off because yesterday was my birthday. I had a great time with my friends and family. Got an amazing cake and it was delicious! Look at the details- my wife is a special breed!
I made progress on my Day-To-Day code. I guess I’m halfway through it.
Did a lot of little things, like the banner picture. How do you like it?
Plan
Keep pushing forward.
What’s on my head
The big finishing milestone comes in sight and it feels amazing.
Nuggets I’ve enjoyed
This week was filled with too much work. Next week again.
Have a great day StockStar!
Hit that heart if you love birthday cakes!
Michael
Recommend The Economy Rocket to your readers and friends
I share my stock investment story without sugarcoating – you get the good, the bad, and those tricky ego trips. I'm developing a service with a mix of smart code and proven investment strategies, making stock analysis a thing of the past if you wish. Because life offers so much more beyond the confines of stock analysis.
Disclaimer:
The information in this article is my personal opinion. I’m not a certified investment professional. It is not consulting, nor does it constitute investment recommendations.
I do my research carefully and follow my personal investment strategy.
The stock market is a complex building with its own rules. There are no rules set in stone, like the rules of physics.
Therefore, use the contents of this newsletter at your own risk and do your own research as well. Investing in the stock market can lead to a total loss of the capital invested.
Happy Birthday Michael!!! Wishing you all the happiness and fullfillment in life.
We are human, and sometimes we should battle with our feelings... it does not matter, where we are... it is CHANGE and CHAlleNGE in the same time. Thank you and happy birthday Michael 😊