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///

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

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

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

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

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

6. Focus

Information is abundant in today& #39;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

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
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@FinFreeWizard