Honey cake and getting back on track financially

As originally appeared in The Jerusalem Post on September 15, 2023.

We are not makers of history. We are made by history. -Martin Luther King, Jr.

So I am walking in the center of town in Jerusalem and I pass a bakery, and low and behold they have trays of Sufganiot for sale. I got upset. It means that the Sufganiot season is getting longer and longer the honey cake season keeps getting squeezed. Is there anyone left like me who really likes honey cake? Much like a dry sponge cake on Passover, it’s a tradition. After 2,000 years of being sustained by honey cake in the exile, how can we be so quick to cast it aside for oily donuts? Shameful. I was speaking to one of my sisters the other day and she said that she isn’t baking a honey cake this year because she’s the only one who likes it. The same holds true in our home. My wife and kids think it’s “gross”! Left with no choice, in past years I would use this space to beg for someone to send me the delicacy. This year due to my being on a diet, I will take a pass this year, so please don’t send me any cake.

Food aside we are now preoccupied with trying to improve ourselves in the upcoming year, based on our looking back and trying to understand where we fell short of our goals. Being a much better spouse, controlling anger, helping an elderly neighbor carry the groceries, are just some of the goals that we set for ourselves to become better individuals. While it’s certainly not trendy in today’s fast-paced culture, taking time out to reflect on the past and thoughtfully plan for the future is the only way to truly improve.

As I have quoted in the past, writing about the concept of repentance Rabbi Shraga Simmons says, “Teshuva literally means “return.” When we “do teshuva,” we examine our ways, identify those areas where we are losing ground, and “return” to our own previous state of spiritual purity.” In many ways, it is recognizing where we erred and then we hit the rest button and try again. Over these weeks of repentance, we say “Help us turn to You, Lord, and we shall return, renew our lives as in days of old.”(Lam 5:21) We are asking to have a clean slate.

While preparing ourselves spiritually takes front and center at this time of the year, now is a great time to hit the reset button on our finances and get back on track financially. In fact, we are also judged as to our financial situation for the coming year on Rosh Hashana as well. The Mishna Breura writes, “The Gemara states that a person’s income is determined on Rosh HaShanah. Rashi explains: ‘And he must be cautious not to spend excessively because he will only be given what was fixed for him.’ This is a great moral lesson for our generation because due to our great sins, many people violate Rashi’s comments and don’t pay attention to their expenditures, and don’t avoid excessive spending. There have been many victims of this terrible practice that eventually brings people to theft and corruption and to great embarrassment.” Mishna Berurah, Bi’ur Halacha 529:1
By taking some time to review your investment mistakes of the last year, you can become an improved investor and get back to building the wealth you need to become financially independent.

Don’t be too smart

It’s quite simple. The way to make money over the long run is by sticking to a strategy. University researchers studied why investors, using available technology to copy exactly what successful investors like Warren Buffet are buying and selling, are unsuccessful. The conclusion: Investors lack the discipline to exactly follow what the ‘top investors’ are doing. They start interjecting their own analysis into the equation, don’t buy or sell all the same stocks, and ultimately underperform the market.

The “remote-control” culture is also played out in the arena of investing. Turn on the TV, check your email inbox, or even go to the gym for a workout, and you are likely to hear about ‘hot stocks’ that will make you rich in a very short time. Who needs to own a stock that increased by 8% in value and pays a nice dividend when you can own the next high-flying technology stock? What inevitably happens is that investors tend to quickly buy a ‘hot tip’ only to sell it as soon as the next ‘tip’ comes along that they must buy. The way to make money over the long term is to stick to a strategy and own solid investments. Similarly, some may see betting on platforms like เข้าร่วม UFA วันนี้ as an opportunity to earn money. It’s essential to approach it with caution and practice responsible gambling, just like you would with your investment strategy.

Vision

Investors need to look forward as well. You need to define your goals. Whether you invest to fund your retirement, to pay for children’s weddings, to leave an inheritance for the next generation, or a combination of these reasons, understand your goals and invest with those goals in mind. Due to the emphasis placed on it by the financial media, investors often pay too much attention to performance and too little attention to why they are investing. If you understand your goals and you invest with an eye on meeting them, your chances of success will be much greater.

May we merit a happy, healthy, and sweet New Year.

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.