5 Investing Strategies to Save Money and Grow Wealth
Growing your wealth through investing is possible. Whether a beginner or an advanced investor, you can increase your wealth. Start with developing solid investing habits that you commit to doing. The more consistent practices you create, the better investment decisions you will make to achieve your desired financial freedom.
If you are willing to learn new strategies, create discipline, and do some planning, you can develop successful investing habits to achieve your financial goals. I love helping people who struggle with investing to gain confidence and clarity.
You may experience challenging periods regarding money, while other times, it seems easier. Review, evaluate, and decide if you can change some of your investment habits.
You want to create a plan that includes safety and capital preservation so you manage your risk. You can adjust your plan until you see the results you want.
Develop a simple plan and a consistent strategy where your money works for you to meet your lifestyle needs. The first step is creating a clear investment plan with risk management. You start by developing good trading habits and a disciplined process. It’s easier to stay disciplined and follow your plan when determining your time frame before investing, whether for the short term or weeks to months (intermediate-term).
Find a strategy to help you sleep well at night without worrying about your investments.
My rule is this: if you are not sleeping at night, your investment portfolio is incorrect; it’s time to change. ~Bonnie Gortler
When you do, everything else will fall into place.
Implementing small changes now makes a massive difference in relieving the stress associated with your finances and helps you feel more confident.
5 Investing Strategies to Save Money and Grow Wealth
- Know your investments. Read documents such as a prospectus or fact sheet to gain more knowledge. Track the performance of your portfolio. Many phone and computer applications are simple to use to help track your investments. You will find quotes, data, charts, market news, and screeners that give you the most active stocks, best-performing mutual funds, and other information to help you make investment decisions. Yahoo Finance is one of my favorite free resources on the internet web version, iPhone and Android. If you have an iPhone, a second resource is an app called “Stocks.” For Android, it’s called My Stocks portfolio.
- Review your portfolio holdings at least once a month or ask for support from a wealth coach, financial planner, or investment advisor. Start by seeing if any individual stock, Exchange-Traded Fund (ETF), or bond holding is overweight and has a higher impact on your portfolio. It’s important to schedule the reviews in your calendar so you make it a priority and remember to do it.
- Make your investment decisions with the current trend of the market. The trend is your friend. If the trend is up (a bull market), it’s easier to make money. If the trend is down (a bear market), it’s harder to make money, and that is where most investor accounts will decline sharply. If you are a trader, be patient and wait for your setup. Buying too soon can be costly. You want a strategy that fits your trading style to manage risk and, in turn, grow and sustain your wealth.
- Emphasize safety and preservation of capital. Develop flexibility with your assets, so if the stock market is not doing well, you can change your portfolio to reduce your exposure quickly to protect your assets. Your investments should be flexible and enable you to reduce or add to your investments in small or larger increments. Ask questions so you know what options are available for altering your investment holdings to move them to cash or a money market where there is little or no investment risk.
- Invest in sectors with positive relative strength. Avoid being in industry sectors that are out of favor and are trending down and sometimes falling sharply.
Investing in the stock market is a marathon, not a sprint. Investing is a long-term commitment where you have so much to gain. Risk management, discipline, and planning are necessary to make money consistently. Use a comfortable strategy that works for you. Consistency with your habits now helps your investment decisions, which is the key to achieving your wealth goals.
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