Why we fill up the tank but bail on the market
As humans, we’re generally quite rational. We notice when something affects our wallet, and we act quickly. That’s especially true when it comes to the day-to-day cost of living.
If petrol prices suddenly drop, what do we do?
We rush to the nearest servo. We fill up the car, maybe even grab a jerry can, and tell our partner to do the same.
We know that buying now at a lower price is a smart move, because every dollar saved matters to the family budget.
The same logic applies when prices are about to go up. We act before they do. It's instinctive. We’re wired to protect what’s ours.
But something strange happens when we apply that same situation to investing. Instead of running toward discounted prices, we tend to run the other way.
When global share markets dip, when high-quality companies temporarily trade at lower prices, most people sell.
They try to escape the volatility and "wait for things to settle down." That logic is completely backwards.
Imagine walking away from a petrol station offering 50% off, just because the media warned you things might get worse before they get better.
It’s easy to forget that investing is simply buying ownership in real businesses. These are the same businesses we use every day, tech companies, supermarkets, healthcare providers. When their prices fall, they’re effectively on sale. And yet, we flee.
Why? Because when we’re fearful, our natural instinct is to preserve. Survival mode kicks in.
But in investing, that fear-driven instinct usually leads to poor outcomes. Instead of securing a future of financial independence, we delay it, waiting for a ‘safer time’ that never really arrives.
This is where financial literacy matters. Not just understanding the numbers, but training ourselves to think differently. To see lower prices as an opportunity, not a threat. And to remember that true wealth comes from staying the course, not from reacting to headlines.
For families in business, it’s even more critical.
Your time is stretched, your decisions impact not just today but the future of your business and your family. That’s why you need more than just scattered financial advice. You need a cohesive plan.
A trusted family CFO who helps you build and stay the course.
Because here’s the truth: market volatility is a feature of investing, not a flaw. It’s not a sign that something’s broken.
It’s the mechanism that allows long-term investors to be rewarded. When prices fall, future returns rise. But only for those who stay invested.
Next time the headlines scream fear, remember the petrol station.
Remember how you reacted when you saw prices drop.
And ask yourself, am I making this decision based on fear, or based on what’s best for my future self?
Because your future self will thank you for holding steady, while everyone else was running for the door.
