When it comes to investing your money, your mindset is everything. If you’re looking for true financial freedom, you can’t go into investing hoping to ‘get rich quick.’ You can’t get into investing by throwing caution to the wind, hoping for the best every time you lay down your money. And you shouldn’t rule out investing because you have a mindset that tells you ‘investing is dangerous.’
When looking towards investing your money, let the following thoughts shape your mindset.
I have much to learn. Never invest your money blindly. No matter where you put your money, whether it’s stocks, shares, bitcoin, real-estate, or wherever, have a teachable mindset. Read ‘The Essays of Warren Buffett,’ learning from one of the most successful investors in the world. Go online and read websites such as ours, learning from expert opinion. Take an online course to help you get to grips with the terminologies and intricacies of investing. Attend seminars, listening to the words of people who have successfully invested their money before you. Read financial newspapers, such as The Wall Street Journal. Find a mentor; that person who will guide your decision making. Do these things and more, until you have an understanding of where you can comfortably begin investing. You have much to learn, so take advantage of all the resources available to you.
I have the power to step out of my comfort zone. Investing is about taking risk, so you will have to step out of your comfort zone. However, there are ways to mitigate the risks involved, so you aren’t being overly-foolish by trying something you have never done before, whether you are investing for the first time or considering diversifying your portfolio. As we said in our last point, educating yourself will give you added confidence to step out of your safety bubble. Playing with small amounts of money will stand you in good stead before splashing out more cash. And using a broker’s simulator, especially when you are considering the examples of spread betting here, will help you understand areas of investment that some consider to be a gamble.
I will master my emotions. When investing, your emotions will be all over the place. There will be excitement when you start making a profit. There will be stress when failure is possible. There will be disappointment when your investment doesn’t go your way. It’s easy to have a knee-jerk reaction to any of the emotions you go through – I will stop investing; I will invest even more money; I will pull out now – but you need to have control. Stay calm when stressed, not pulling out at the first sign of trouble. Curb your impulses to not spend more money than you can comfortably spend, even when things are going well. And have patience, remembering that most investments only pay out in the long-term, so you will have to ride the waves of whatever market you have invested into.
So, consider yourself today. How is your mindset? If your thinking is in any way skewed, adapt your mindset to better control your thoughts. Financial success can be yours, but only if you operate due wisdom and diligence in your mindset going forwards.