People should make investment decisions based on their goals and the characteristics of investment options available to them. But economists have found that people’s investment decisions are heavily anchored to personal and generational experiences. That means your upbringing, social status, and other factors will shape how you choose to invest.
While your background is sure to influence your ideas about money and how it should be used, there’s really only one way to stay wealthy. Getting money requires taking risks, being optimistic, and putting yourself out there. But keeping money requires a very different set of characteristics, including humility, fear, and frugality.
Want to better understand how your life experience shapes your financial perspective? We recommend our Instaread on The Psychology of Money.