By Todd Williams
If you ever thought for a moment that the stock market is a confusing place, you are absolutely correct! Understanding the market is like trying to predict which way the wind will blow two days from today on the planet Pluto!
The reason why it is difficult to predict which way the market will go at any one time is because the stock market is like raindrops on a car window. You have no idea why the rain moves the way it does on a car window, and you have no way of predicting what millions of people are thinking at any one time!
If historical data is no indication of future events in the stock market, then why do the reporters and talking heads (financial experts) tell us what happened after the fact?
Isn’t that historical data?
So what do you do?
Step 1: Relax!
The important thing to remember is that we don’t manage our finances in a vacuum. Don’t get caught up in the emotion of investing. Like any other relationship, time is very important. It is not timing of the market (when to invest) because the best time to invest in the stock market was when it was first created, and I’m sure all of us missed that.
Time in the market (how long you invest) is important. How much time you spend with that significant other in a healthy relationship determines the quality of your relationship. How long you are invested works the same way. There are good times and bad times. Enjoy the good times, and bear the bad. In the long run, the relationship is worth the effort.
Step 2: Have a reason why.
How you feel is an important aspect of any relationship and your relationship with money is no different. However, your feelings should be based on something tangible. Feeling the way you do about an investment “just because”, may work with your significant other, but not with your finances. Have a reason why you invest your hard earned money, and be able to articulate that reason. Your “why” should outweigh any bumps in the road along the way. Feeling better about your reason why you invest more so than how the market is performing at any one point in time.
Step 3: Invest in yourself.
The best place to put your money always has and always will be an investment in yourself and your family. You decide what your dreams are and invest your time and energy in gaining the knowledge that will benefit you and your family in accomplishing your dreams. Knowledge is power only when properly applied. Constant and never ending improvement of ones self is the key to personal and financial growth. Read the books, go to the seminars, take a class, talk to people and then decide what is the best route for you to take.
Manage your money like you would manage any relationship. Take the time to get to know what you are doing, ask questions, watch, and be patient. What you will discover in time is that as you grow, so too will your money.
Maximize your dreams
Overcome obstacles by organizing your life
Network to net-worth
Enjoy the moment
Yield abundance
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