Tough markets out there right now.
How are you coping?
The journey towards building wealth starts with the battle between your ears.
๐ฆ๐๐ผ๐ฝ ๐๐ฝ๐ฒ๐ป๐ฑ๐ถ๐ป๐ด ๐๐ผ ๐บ๐๐ฐ๐ต ๐๐ถ๐บ๐ฒ ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ต๐ฒ๐ฎ๐ฑ!
Instead, increase your exposure to humility during markets like these.
Here is what I tell people who get nervous about the investments in an environment like this:
โ Focus on your JOB. Go to work, make money, save a bit, donโt stop dollar-cost averaging & things will work out in the long run.
โ Youโll never regret investing too much into a broad-based index fund (especially not when it is on sale & 20% cheaper than a few weeks ago).
โ Acquiring assets makes compound interest your friend. Acquiring liabilities makes compound interest your enemy.
โ Saving your first $100,000 is the hardest. Not magically, but mathematically. Once you cross this threshold, you reach a tipping point where compounding starts to work for you. Prior to this, most of the work is done by your savings rate.
โ Building wealth relies more on your financial trajectory than your current financial position.
๐พ๐ค๐ช๐ก๐ ๐ ๐๐ค๐ค๐ ๐ฃ๐๐๐๐ฉ ๐ค๐ ๐จ๐ก๐๐๐ฅ & ๐ก๐ค๐ฌ๐๐ง ๐ง๐๐ฉ๐ช๐ง๐ฃ๐จ ๐๐ ๐๐๐ฉ๐ฉ๐๐ง ๐ฉ๐๐๐ฃ ๐๐ค๐ฃ๐จ๐ฉ๐๐ฃ๐ฉ ๐ฌ๐ค๐ง๐ง๐ฎ & ๐๐๐๐๐๐ง ๐ง๐๐ฉ๐ช๐ง๐ฃ๐จ?
Markets are volatile. In order to avoid unnecessary psychological unrest, donโt look at the markets too often.
The future is uncertain. The future has & will always be uncertain. There are no easy answers but the only sound advice when dealing with irreducible uncertainty about the future is to focus on what you can control & not on what you can’t control.
We can’t control the markets.
But we can control our savings rate, our spending & not selling in an emotional panic.
โ What other tips do you have for coping with the current marketsโ Chime in in the comments
โItโs insane to risk what you have for something you donโt need.โ โ Warren Buffett
โMoney is not spreadsheets. Itโs dopamine and cortisol.โ – Jason Zweig -> Itโs ALL about how you think & behave.
