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Index Of The Seven Deadly Sins Links:
Although popularized by the epic poem, The Divine Comedy
The version I am using as the basis of this series of posts will date back to the 6th Century AD using the nomenclature of the Catholic Pope, Gregory the Great.
These sins are ordered from the least deadly to the most egregious (and this series of posts will follow the same ordering).
The last and considered deadliest of the Deadly Sin was coined Superbia (later donning the name of Pride)
“Pride goeth before destruction, and a haughty spirit before a fall.”- 1611 Kind James Version of the Bible, Book of Proverbs, 16:18
Pride has led many to financial ruin.
It is often hubris that makes an investor feel that they can do no wrong and that they are smarter than the market.
Pride will cause an investor to stay longer in an investment longer as the act of selling would acknowledge that a mistake was made.
This scenario epitomizes sunk cost fallacy.
It will be interesting to see how one of the longest bull markets on record will create a subset of investors who feel like investing geniuses and can do no wrong.
“All men make mistakes, but a good man yields when he knows his course is wrong, and repairs the evil. The only crime is pride.”
― Antigone
The sin of Pride blinds an individual to his or her limitations.
There are many other situations where pride can have financial implications.
My ex when she went to the grocery store would refuse to use coupons.
She thought coupons were beneath her as a wife of a physician and a non-practicing physician herself.
She was more concerned about public perception, as if couponing should be only relegated to the lower class.
This was pride at work.
I myself have no such qualms about saving money and still use coupons even though I make a one-percenter salary and have a seven figure net worth.
Regardless of whatever wealth I achieve, I will never turn down the opportunity to save.
Pride in moderation can be beneficial as you strive to be the best you can be.
However taken to the extreme pride can lead to extreme vanity and narcissism, when you become so self absorbed you neglect the rest of the world around you.
There are stories circulating throughout the internet of individuals spending outrageous amounts on plastic surgery, as much as 7 figures, to maintain their vanity.
This is pride at work as they try to defy time and maintain their vanity.
The financial consequences of these decisions are often are staggering.
The counterpart to Pride is the Heavenly Virtue of Humility.
Humility plays an important role for the investor.
Recognizing one’s limitations and asking for help is the first step to regain your footing on the path to financial success.
“A true genius admits that he/she knows nothing.” — Albert Einstein
I am at my current state of financial success only because I recognized that I was severely lacking in financial knowledge and undertook steps to correct it.
Even now I still know I have much to learn and continue to read financial blogs and financial books to increase my financial knowledge base.
Thus ends the series on The Seven Deadly Sins FIRE edition.
Hopefully you can now recognize which sins you are at most risk for and currently battling and hopefully employ some of the heavenly virtues discussed to counter them.
Note:
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-Xrayvsn
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