Why You Need a Fun Portfolio

Your financial cheat meal

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Investing is 90% psychology.

You could be an intellectual genius but still be a terrible investor if you can’t control your emotions.

One of the ways I like to keep my investing psychology in check is by having a “fun portfolio”. This portfolio contains meme coins, NFTs, and other things that I wouldn’t touch with a ten-foot pool in my serious long-term portfolio.

Think of it like having a cheat meal.

Trying to stick to a strict diet can lead to potential binge-eating episodes. Having a cheat day gives you a psychological release and helps keep your cravings in check.

The same applies to investing. Having a fun portfolio scratches your itch without putting too much money at risk.

But just like cheat meals, moderation is key. Here are 2 important rules I follow:

  1. I limit it to 10% max of my total holdings. This is what I’m comfortable with going to zero without losing sleep.

  2. I use a different wallet that’s separate from my other accounts. This helps me mentally label that it’s fun money and prevents me from dipping into my long-term portfolio.

Compounding growth is the key to wealth. And the longer you can leave your money growing uninterrupted, the better. Having fun with 10% of my money lets me leave the other 90% alone.

Greed is part of human nature. Always has been and always will be.

Instead of trying to fight your psychology, understand it and use it to your advantage.


Fifty Sat

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