To Wander is Easy but Beware
Today’s Five-Minute Friday word is “wander.” Of course, there are many places in the scriptures that talk about wandering. Wander is a verb, which means action. However, it isn’t purposeful action. Wandering is movement without a definite destination or purpose. The goal is unknown, the route to get to the destination is uncertain, and, therefore, the actions are confused, reactionary, and easily distracted.
Proverbs talks about wandering away from “the way of good sense.” It says, “One who wanders from the way of good sense will rest in the assembly of the dead.” Proverbs 21:16 In a way, that is saying your end will be lifeless, decaying, and unproductive. This applies to all areas of life, including investing.
A common theme I often see in questions from new investors is related to chasing the latest hot tip, the current “this cannot lose” trends or the last soundbite from an “expert.” The questions are generally geared towards get-rich-quick. Sometimes it is buying gold. Many times, the question is related to the bitcoin or some other cryptocurrency. Some just want great dividend yield, so they want investments based on high yield to make up for lost opportunities. The latest fad is their delight. What do all of these have in common?
The Common Thread
The common thread is a lack of a clearly defined goal, a strategy to accomplish the goal, and methods designed to reach the goal. They wander because their goal is lacking in clarity. They veer to the right and left with knee-jerk decisions. In the end, their results are often tragic and result in tremendous loss.
Avoid Investment Wandering
If you cannot clearly describe why a particular investment fits in your strategy and will get you to your goal, don’t buy it. You will do far better if you seek advice from someone who has a strategy for their own investments and have tactics that can help you avoid a wandering approach. It is reasonable and fair to ask your investment advisor about their personal investing goal and strategy. Don’t just hire the smooth talker.
How to Identify a Follower of Jesus
They care about the resources God has given them. This includes their health, wealth, time, and talents. Knowledge, understanding, and wisdom are their sources of strength and victory.
“By wisdom a house is built, and by understanding it is established; by knowledge the rooms are filled with all precious and pleasant riches. A wise man is full of strength, and a man of knowledge enhances his might, for by wise guidance, you can wage your war, and in abundance of counselors there is victory.” Proverbs 24:3-6 (ESV)
Five Minute Friday
This post is part of the weekly Five Minute Friday link-up.
All scripture passages are from the English Standard Version except as otherwise noted.