5 Mindset shifts for successful investing
Having the right attitude and mindset are powerful forces for achieving your goals. When it comes to investing, your mindset influences not only your outlook but also your decisions. The right mindset can help you weather the storms, see the possibilities and manage your money wisely.
Here’s how to get into the right mindset for investing:
Think of money as a tool, not an end destination
Money isn’t the goal; it’s a way of achieving your goals and aspirations. Knowing what you’re pursuing in life will help you determine the right course of action and guide your investment decisions. With so many investment options available, it’s important to understand which are better suited to get you to your destination.
For example, if you’re looking for growth, then Share Trading is one route to go. A Tax-Free investment account gives you security, while investing in property is a great option if it’s income you’re after.
Invest in yourself
Good decision-making requires an understanding of what the elements involved are and what the outcomes could be. Before you put money into anything, get to grips with your own finances and preferences, brush up on your financial knowledge and invest time in enhancing your skills to confidently make financial decisions that serve your goals.
Don’t invest in what you don’t understand
Before you invest in something, look at the business behind it. Is it profitable, and do they conduct business ethically? Is there value in the stock, and is the price fair? If it is not simple to understand or doesn’t make sense or you’re doing it just because everyone else is, then you’re just gambling, which could result in unrealistic expectations and expensive consequences.
Find your risk-reward balance
All investments have a degree of risk, some more than others. Your tolerance for risk and what your current situation is will drive you towards or away from an investment decision. More risk could mean higher returns but also significant losses if the market drops, while low risk could mean little to no growth. There’s no one size fits all, but your attitude towards risk will factor into the types of investments you choose.
Think long term
In the end, investment success isn’t about timing the market; it’s about time in the market. Given enough time, even small amounts can amass exponential growth. A long-term approach will likely keep you focused on your goals and less likely to make emotional decisions when the market fluctuates.
If you want to start your investment journey or need guidance on how to grow your money, speak to one of our financial planners today.