Smart Thinking On Investing – October 7
Smart Thinking On Investing – October 7
What to Do When Your Financial Motivation Loses it’s Fizzle
- Don’t rely on motivation and willpower to support you through your financial journey; approach your finances systematically to back you up if they both fizzle out
- Tracking and knowing how you’re spending your money is key to overcoming the endless living paycheck-to-paycheck cycle
- Set up automatic bill pay, and put aside a certain amount each month towards savings and investing—rather than just whatever’s left over
Don’t Get Complacent; Push Yourself and Your Paycheck
- Your expenses won’t necessarily match up to the income you are earning
- So experiment with your paycheck amount to see what you can and can’t live with and calculate just how much you can trim down on your living expenses
- Use this new ‘extra’ to increase the amounts you make towards savings and investments, enabling you to plan better for your financial future
Know a good financial system others should set up? Share in the comments section below
Make Wiser Spending Choices
- The anchoring effect; buying items because they’re ‘discounted,’ making expensive numbers seem small and throwing your decision-making skills out of whack
- Some anchoring tactics involve offering you 3 options to look like you’re given ‘more’ choice or the percentage off anchor in which we favor higher percentages on still extravagant purchases
- Overcome these by choosing your own set lower anchor points to save money when considering purchases
What You Risk By Not Investing
- Investing, not savings alone, will help you build your wealth to provide an income during your retirement when you most need it
- Make your financial goals specific and measurable to enable you to work and reach them
- You risk diminishing your chances to help your money grow by not investing at all; instead, think long-term; construct a diversified portfolio to overcome any market volatility fears
Serious About Growing Your Money; Index Funds Are Your Answer
- A stock market index is a tool used by investors to measure the market and compare the returns from specific stocks
- When set up, an index fund tracks aims to track the stock market index, investing your money over the whole market and lowering your risk exposure
- Their benefits include low expenses, portfolio diversification, and that you’re not trying to outperform the market as your returns simply track any market ups and downs
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.