What would you do with more wealth? A shift in your thinking will put you well on your way to experiencing financial success. You can also achieve building wealth when you create sound, disciplined habits and make the necessary small changes in how you manage your money.
A mind shift can be a big ask when you are set in your ways and actively resist the benefits that real change can make in your life. You can begin the process by defining a clearly stated wealth objective and by putting together an investment strategy that works well within your life.
Whether it’s $10,000, $50,000, $100,000, or one million that you want, know that consistent growth of your money starts when you make your money work for you. If you’ve been living to make money, then now is the time for you to change the script.
How might having more wealth change your life?
If you are currently in the position of overseeing your investments, it’s wise to have an investment strategy in place that is flexible and allows you the ability to exit quickly to reduce your exposure when the stock market is not performing well.
Another essential key to growing your wealth is learning to manage your risk when investing. You do this by focusing on safety and capital preservation, which will help you avoid significant losses. You want to be prepared and confident that your portfolio can endure over the long term when and if there is a stock market decline.
You have the ability a portfolio to suit your lifestyle, dreams, and time frame. Make sure to have it support your personal goals and objectives, not someone else’s.
Take time to review your investment portfolio regularly or have it looked at by a trained professional. When seeking the advice of an investment professional, put them in a position to answer your specific questions during a one-on-one conversation. It will be essential that you communicate with them at least two times a year.
When reviewing your own portfolio, check to see if simple changes could increase your potential returns. One way to do this (that most people don’t do) is by having the discipline to take a loss. What happens many times is that most investors hold on far too long when their investment(s) are not profitable.
Being prepared helps you be more comfortable with investing. Make your investment decisions with the current trend of the market. Your risk is more considerable when you go against the trend. Following simple strategies and also learning when the probabilities are higher than the market is likely to rise will make it easier to make money, and will help you experience less stress.
9 Wise Investing Tips to Reduce Your Stress When Investing
- Set clear goals and objectives for your investing success.
- Create an investment plan that includes risk management. Be intentional with a plan to guide your decision making. I’m here to support and guide you.
- Develop an exit strategy to minimize loss before you purchase securities for your portfolio.
- Track your portfolio, so you will know what is or isn’t performing well. You can keep an eye on your investments to see how they perform on the internet or your phone. One of my favorite free resources on the internet is Yahoo Finance https://finance.yahoo.com/. Another resource, if you have an iPhone, is the application “Stocks.”
- Review your portfolio at least once a month to see if any individual stock, exchange-traded fund (ETF), or bond holding is overweight in your portfolio. Investments that you have a large percentage of holdings will have a higher impact on your portfolio.
- Invest in sectors with positive relative strength. Do your best to avoid being in industry sectors that are out of favor and are trending down and sometimes falling sharply.
- Diversify your investment portfolio to include a broad mix of stocks and bonds. This action will reduce volatility in your portfolio. As you grow older, it’s a good idea to move your assets into less-risky investments. A quick rule of thumb is to have an allocation to bonds that is equal to your age.
- Have a liquid portfolio. The stock market can move very fast. Something you might not have expected could occur, and you may want to be in a position where you can make a change in your portfolio.
- Manage Your Risk. Have a plan that includes safety and capital preservation so you can avoid severe losses. Make your focus on achieving consistent gains over time.
Simple changes with your investment strategy can make a significant impact when growing your wealth. Start using just a few of these wealth-building strategies, and you will feel more comfortable, less stressed, and less overwhelmed when growing your investment portfolio.
Decide today that NOW is the time to shift your mindset so you can feel good about your money and with increasing your wealth potential. See yourself choosing wise investments, feeling safe, and being in full control of your money. Your journey to more wealth is possible.
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