- Don’t Get Caught Up in Current Events.
The news continuously provides us something to worry about. But investors who perform the best ignore negative news. Pearl Harbor is attacked? They invest. Watergate? They invest. Black Monday? Invest. Great Recession? Invest. Regardless of the news, highly effective investors are continually investing. - Embrace Market Risk.
On its face, risk seems like a scary word. However, highly effective investors embrace market risk. They reduce it by diversification, not avoidance. They see risk as potential and not as a threat. Less effective investors get this backwards. Any benefit from investing is nothing but a reward for the risk taken. - Don’t Panic.
Markets will decline, money will be lost, and recessions will occur. However, highly effective investors expect these events. They know that markets will also rebound, losses will be recovered, and growth cycles will follow recessions. By expecting volatility in their investments, they lose no sleep when they experience it. They continue to invest, understanding that short-term losses are part of the game. - Prioritize Investing.
Capitalism can be a wonderful thing. However, it also creates an environment where individuals and businesses work overtime to earn our dollars. There are many shiny things, pleasures, and experiences begging for our financial attention. It is okay to participate in life’s little luxuries, but highly effective investors value investing more frequently.
Ask “What would you do if you had a million dollars?” to the next person you see. 99% of the time, you’ll be given a list of perishable purchases in response. If one has a million dollars and they spend it, they are not millionaires anymore. But most people would rather spend a million dollars than be millionaires. - Stick to a Financial Plan.
If you fail to plan, you plan to fail. Highly effective investors not only create a financial plan, but they stick to it. Their plans have a place for wants, needs, and emergencies. Their budgets are realistic, and their goals are the central focus. - Earn Interest, Don’t Pay It.
Interest flows from the pockets of ineffective investors into the pockets of highly effective investors. If a debt isn’t working to increase your net worth, don’t take it on. Full stop. - Seek Professional Help.
Highly effective investors recognize that they are often their own worst enemy. They see “water cooler” investment advice for what it is. And they are wise enough to turn to financial professionals for help. Trusted financial consultants are greatly valued by highly effective investors.
Listen to a deep with Jordan Hadfield about these 7 habits on the Power Up Wealth podcast.
