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Emotions can cloud judgment from "summary" of Wisdom from Rich Dad, Poor Dad by Robert Kiyosaki
In the world of money and investing, emotions can be a dangerous adversary. When it comes to making financial decisions, it is crucial to keep a level head and not let emotions cloud your judgment. This is a lesson that my rich dad taught me early on in life, and it has served me well ever since. Emotions such as fear, greed, and excitement can often lead people to make irrational decisions when it comes to their finances. For example, when the stock market is booming, people may feel euphoric and decide to invest all of their savings in the latest hot stock. However, this decision is based more on emotion than on sound financial principles. Similarly, when the market takes a downturn, fear can take hold and cause people to panic and sell off their investments at a loss. This knee-jerk reaction is often driven by emotion rather than a rational assessment of the situation. As my rich dad often said, "When emotions are high, intelligence is low." In order to make wise financial decisions, it is important to take a step back and assess the situation objectively. This means putting aside your emotions and looking at the facts and figures before making a decision. It also means having a long-term perspective and not getting caught up in short-term market fluctuations. By keeping emotions in check and focusing on the facts, you can make decisions that are in line with your financial goals and values. This is a key principle that my rich dad instilled in me, and it is one that I have found to be invaluable in my own financial journey. So remember, when it comes to money and investing, emotions can be your worst enemy.
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