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7 key Investing habits to help you to Financial Freedom
Investing is one of the most important parts of obtaining financial freedom
Not everyone has the investing skills of Warren Buffet
but here are some habits to help you
Time for a ///thread///
Investing is one of the most important parts of obtaining financial freedom
Not everyone has the investing skills of Warren Buffet
but here are some habits to help you
Time for a ///thread///
1. Compounding
The 8th wonder of the world
It works over time to magnify everything but very powerful in investing
The key is to not interrupt it. Time in market beats market timing
$100k initial investment @ 8% p.a. over 30 years and you are a millionaire
The 8th wonder of the world
It works over time to magnify everything but very powerful in investing
The key is to not interrupt it. Time in market beats market timing
$100k initial investment @ 8% p.a. over 30 years and you are a millionaire
2. Patience
Patience can be developed
Resisting the urge to sell during downturns or the highs of bull markets are hallmarks of great investors
There can be long periods of nothing happening in the stock market and then a lot happens in a few weeks
Hold for the long term
Patience can be developed
Resisting the urge to sell during downturns or the highs of bull markets are hallmarks of great investors
There can be long periods of nothing happening in the stock market and then a lot happens in a few weeks
Hold for the long term
3. Consistency
Invest affordable amounts consistently each week/month/quarter
This method is sometimes called "Dollar Cost Averaging" and it smooths out the price you buy at - avoiding timing of the market
Life can throw up surprises so always have an emergency fund
Invest affordable amounts consistently each week/month/quarter
This method is sometimes called "Dollar Cost Averaging" and it smooths out the price you buy at - avoiding timing of the market
Life can throw up surprises so always have an emergency fund
4. Managing Emotions
Many decisions to buy or sell are made based on what people hear others recommending at work, dinner parties or friends over a few drinks
You need to be independent thinking
Block out information from the environment around you unless it has big validation
Many decisions to buy or sell are made based on what people hear others recommending at work, dinner parties or friends over a few drinks
You need to be independent thinking
Block out information from the environment around you unless it has big validation
5. Understanding
Blindly investing in stocks just because you know their name, use their products, etc. is not good
Research everything thoroughly before you invest to build out your conviction
When the market dips your conviction allows you to hold or even buy some more
Blindly investing in stocks just because you know their name, use their products, etc. is not good
Research everything thoroughly before you invest to build out your conviction
When the market dips your conviction allows you to hold or even buy some more
6. Focus
Information is abundant in today's world and it can tug at our attention constantly
Market noise and commentators trying to predict whether the market will be up or down next week
Focus on your long term plan
Build up barriers around you to prevent distraction
Information is abundant in today's world and it can tug at our attention constantly
Market noise and commentators trying to predict whether the market will be up or down next week
Focus on your long term plan
Build up barriers around you to prevent distraction
7. Self Educating
Knowledge around investing has never been so available but you may still not be informed
Self educate on investing now
Read/listen books, podcasts, Youtube - many are free
"The Psychology of Money" - @morganhousel is an excellent resource for all levels
Knowledge around investing has never been so available but you may still not be informed
Self educate on investing now
Read/listen books, podcasts, Youtube - many are free
"The Psychology of Money" - @morganhousel is an excellent resource for all levels
Thanks for reading and making it this far
Investing is a skill for life and should be part of any financial literacy eduction given in schools
If you want to learn more on investing and financial freedom then follow me
@FinFreeWizard
Investing is a skill for life and should be part of any financial literacy eduction given in schools
If you want to learn more on investing and financial freedom then follow me
@FinFreeWizard
