Investing in Love

Love and finances couldn't seem less related on the surface, but really, the guiding principles are very similar. Use your head, not your heart. Diversify your holdings. Buy low and sell high. And know what you really want.

Apply a little financial know-how to your love life and see your stock in romance improve.

#1: Diversify.
By distributing your money (or your attentions) over a variety of stocks (dates), you reduce your risks of losing big on one thing. So, instead of planning your wedding after your first date, see a few people at once until one of those investments pays off as a relationship. You don't have to juggle dates if that's not your style; just make more plans with platonic friends. No more "saving" Friday or Saturday night for someone special.

#2: Don't throw bad money after good.
We often hang onto relationships (or stocks) that continue to fail only because we've put so much time and effort (or money) into them. Unfortunately, some gambles - in love or on the market - just won't pay off, and you've got no choice but to buy high and sell low. Cut your losses early. It won't get any easier later.

#3: Play what-if.
Financial advisors often ask their clients, "What would you do if money were no object?" to tap into their hidden desires - and to show them how attainable their dreams often are. Are you waiting for the perfect relationship before you go after what you really want? Do you think you need to meet Mr/Ms. Right before you can buy a house, adopt a puppy or buy season tickets to the ballpark? Ask yourself what's really stopping you. Live the life you want, without worrying about having a partner.

#4: Expect market corrections.
Even when times are as tough, you're still better off investing than hiding your cash under your mattress. Long term, you'll always make money in the market, because the market will correct itself. By the same reasoning, it always pays off to keep dating, even when the outlook is bad.