Lorraine J. Green, Contributor 
Green
PRIDE, ENVY, sloth, gluttony, lust, anger and greed are often referred to as the seven deadly sins. We may associate these terms with our religious beliefs, but have you ever thought of affiliating them to your investment practices? The fact is that the manifestation or prevalence of these habits in our investing lives can be quite hazardous to our wealth and can prevent us from reaching that long-hoped-for place of prosperity.
For the purposes of this article, we will take a closer look at only four of these sins and how we can combat their effects on our financial security.
PRIDE
For investing purposes, pride refers to that excessive belief in our own abilities to predict the market and our refusal to ask for help. So, while the analysts implore us to look at fundamentals and use their expertise, we casually dismiss it and say "Cho! We have been in this thing a long time and these financial analysts don't know what them talking bout."
The truth is that financial advisers, analysts and other industry experts offer very valuable advice. They are privy to information and other market research that you may not be able to readily access and they have also been extensively trained to evaluate market occurrences and will have had the experience of making solid recommendations.
Bottom line: Put pride aside, ask for help and use an adviser.
ENVY
For many of us, we are engaged in the perpetual contest of "keeping up with the Joneses." As the Joneses increase in status and situation, so too do we desire that improvement in our lives. We often spend beyond that which we earn, and often buy those objects that we cannot afford as long as they will allow us to "keep up appearances."
Unbudgeted spending is a major way of depleting one's wealth and will certainly threaten our long-term financial security. Remember that the journey to wealth is a carefully crafted one that will depend on your ability to keep some of which you have earned and not spend frivolously.
SLOTH
Financially speaking, sloth refers to slowness, laziness or tardiness in taking advantage of investment opportunities. For years, many of us make promises or resolutions to save more, diversify our portfolio or invest in mutual funds so that we can pay for our children's university tuition, but several years later, we have not moved beyond the point of making the resolution.
It is important to note that time affects the value of your money, and so, the most advantageous time to invest your money is now. You will not be able to realise the significant returns that you are desiring if your money is not invested in a product or in an asset that can preserve your capital, grow your capital and minimise your tax liability.
Bottom line: Don't procrastinate. Take charge of your financial life and start investing today.
GLUTTONY
For our purposes, gluttony refers to the inordinate desire
to consume more than one
can afford, in essence this is excessive overindulgence. We may engage in frequent shopping binges, night clubbing or even an addiction to a particular food item, but we need to be reminded that great fortunes are lost one dollar at a time.
It is critical that we be steered away from the dangers of overspending by monitoring all of our expenses. It is also vital that we make saving and investing a monthly priority because as the Richest Man in Babylon declares, wealth has less to do with how much you earn and much more to do with how much you keep.
Lorraine J. Green is Wealth Manager at NCB Capital Markets. Contact her at 1-888-4WEALTH or info@ncbcapitalmarkets.com
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