When people choose whether or not to invest, their decision is usually based on things that are out of their control. Things like, “Who’s in Washington?” “What’s the Fed up to?” and “What did the stock market do today?” We are mesmerized by the daily headlines coming out of Wall Street and Washington. But all of this will have little or no impact on you achieving your financial goals. The main driver to your success will be focusing on what “you” can control. Your behavior and actions will be the biggest cause of your success or failure. For example, do you jump at every new and exciting idea or are you frozen with fear and doing nothing for the long term?
You need to focus on actions that add value, which can lead to a better financial experience:
- Create an investment plan to fit your needs and risk tolerance
- Diversify globally
- Manage both living and investment expenses
- Make decisions based on your tax situation
- Stay disciplined through market dips and swings
- Keep pace with inflation