It’s never too late to do the right thing. This holds true for becoming a good investor.
If you are considering investing for the first time during 2018, or perhaps you’re a seasoned investor looking to sharpen your skills, consider these points:
- Learn to delay gratification. This will help you enjoy compounding your money.
- Spend less than you earn and invest wisely after that.
- Always think long-term — at least 10 years out. No matter what happens in the market on any given day, don’t react to it. Day-to-day news cycles are meaningless in an investment program.
- Develop your emotional strength. Know that security prices will fluctuate higher and lower than you think, for longer and shorter than you think. During these times, there will be somebody — either your neighbor, friend or the media — telling you why you’ve got to make a change. Don’t.
- Have a good investment plan set out in advance based upon academic research, not speculation. And be able to live with that plan, live your life, and let us do the worrying and investing.
Most people struggle with at least one of these points. They react to current market events, they don’t have a plan, or they’re emotionally very fragile when it comes to investing.
In the end, it’s about trusting market prices and diversifying globally. This is where we come in. We can handle it.