How To Make Investing Easy
How to Make Investing Easy
Here is the problem – markets go up and markets go down. Lately, they have gone up and down more than normal. Naturally, we tend to react to these movements. But many times those reactions aren’t healthy. The truth is the healthiest and wisest way to invest should be simple, but that is not easy.
You do not need a complex investment strategy. Research has proven that the more simple the investment strategy, the better.
Timing the market is a very poor strategy. It does not produce the best results.
But taking and maintaining that simple approach is not easy. Here is why – When the market is going through a downward period, staying disciplined is tough. There are emotions involved with watching the balance of an investment moving in the wrong direction. Those emotions will push you to make adjustments to the investments and therefore dramatically impact the simple and wise investment strategy set before you.
The best ways to overcome those emotional decisions?
Stop looking at the balance on a daily basis. Your goals are not daily goals, so way evaluate them on a daily basis.
With this proper mindset, you will be able to make better decisions with your investment advisor when considering the types of investment to purchase.
Another thing that helps keep your investment strategy simple and on task is by having a financial plan. This financial plan helps keep your mindset properly focused. Rather than worrying about daily balance you are able to assess the risk of your investments and compare it to the goal – the purpose of the investments.
Being a good steward of your money, giving glory to God with your finances does require an effort to try and build your wealth (see Matthew 25:14-30), but it also means having the right mindset while investing. Stressing about investments is not biblical, and the right focus can help prevent that.
“Somebody is sitting in the shade today because someone planted a tree a long time ago” – Warren Buffett