The Hardest Part of Value Investing Is Your Financial Situation

Here's a joke, but read it backwards and you'll see how the human mindset shifts.

2K monthly salary: Russia's stance on NATO's eastward expansion.

3K monthly salary: A Bentley Bentayga is definitely no match for a Maybach S600.

5K monthly salary: The P40's camera definitely trumps Apple.

20K monthly salary: What on earth does the client want?

30K monthly salary: The proposal still needs some tweaking.

50K monthly salary: When am I ever going to stop working for someone else?

As you can see, as income rises, a person's demands on the world shrink, while their demands on themselves grow.

Income should be enough to cover your desire for self-actualization and still have surplus—considerable surplus.

If you invest that surplus, it's hard to get anxious about gains and losses.

Because you don't really need it for basic desires, yet self-actualization remains out of reach.

You're also unlikely to let it steal your focus. On a smaller scale, there are countless beautiful things waiting for you to enjoy; on a larger scale, your attention has already shifted toward self-actualization.

Either way, something will capture your attention—you won't keep your eyes locked on just this one egg.

It's only under these financial circumstances that a person's mindset is truly suited for long-term investing.