Dumb Money & the Real Cost of Emotional Investing
I finally got around to watching Dumb Money over the weekend, the movie that tells the wild story of how everyday retail investors took on Wall Street hedge funds by piling into GameStop stock during the pandemic.
Even though I lived through it in real-time, seeing the story dramatised reminded me just how chaotic that period was not just in the markets, but in people’s minds.
It also reinforced a powerful truth:
When it comes to investing, the biggest threat to your future isn’t the market it’s your emotions.
💥 Fear, Greed, and FOMO: A Dangerous Mix
Back in 2021, GameStop became a symbol of rebellion. A group of Reddit users banded together to trigger a “short squeeze” and punish hedge funds betting against the stock. The price skyrocketed from under $20 to over $400 at one point, fuelled almost entirely by hype, momentum, and a belief that this time was different.
But as with all bubbles, the aftermath was painful.
Some made money. Many lost it all. But almost everyone was acting on emotion, not strategy.
There were no fundamentals. No long-term view. Just noise.
📉 The Hidden Cost of Chasing Hype
I remember conversations with people who were normally cautious with money — suddenly glued to stock tickers, texting me about “YOLO trades,” and opening trading accounts for the first time.
The common thread?
They weren’t investing for their future — they were reacting to the moment.
And while it may have felt exciting, for many it ended in stress, regret, and financial setbacks.
💭 A Better Way: Invest With Purpose, Not Panic
The GameStop saga (and Dumb Money movie) is a powerful reminder of why Lifestyle Financial Planning matters.
Instead of chasing the next hot stock or trend, you start by asking:
- What kind of life do I want to live?
- What does financial freedom actually look like for me?
- What do I want my money to do for me and my family?
From there, we build a plan and investment strategy that’s designed to serve those goals — not beat the market, not follow Reddit, and certainly not swing with the headlines.
🎯 In Summary
The most important investment you can make isn’t in whatever hot stock or meme coin you hear about on Reddit or TikTok, it’s in your plan.
Markets will always rise and fall. Trends will come and go. But a clear, values-driven financial plan keeps you grounded, focused, and calm no matter what the noise says.
👋 Ready to Invest With Clarity?
If you’ve ever found yourself wondering whether you’re doing the right things with your money — or if your strategy is more reactive than intentional — let’s talk.
Book a free consultation today, and let’s start building a financial plan designed
