By Bonnie Gortler
Wouldn’t it be great if you were able to be kinder with yourself when thinking about wealth? There is no need to rehash those past experiences that may not have worked out and held you back from achieving your financial goals. Lessons learned ultimately make you better. It’s when you do not learn from them, and you repeat them, that it becomes a problem.
Do you have a system in place to bounce back and turn things around to move you closer to your financial goals? If so, take the time now and pat yourself on the back. If you’ve yet to create a system for yourself, you can start today by developing a plan which includes consistent habits that you can follow.
Your plan doesn’t have to be complicated or disruptive to your everyday life. For best results, keep it simple. With some thought and preparation, you can create a plan which includes a system for achieving more wealth and financial security. You don’t need all the answers right now to get started. Whether you’re under 20, in your 30s, or over 50, it’s possible to make life and money changes for the better. What you want is an action plan that will grow your current income into sustainable wealth, turning your dreams into reality.
By developing consistent habits, and with adjustments, you can make a big difference for your future, so you feel good and are not stressed or worried about your finances.
How can you start to make this happen?
The first step is to decide now, not tomorrow, not next week, or next year that you’re ready to make your financial security a priority. The next step is changing your mindset from seeing yourself only working for your money and shifting it to understand how important it is that your money works for you.
This will come to pass by investing in the stock market.
Isn’t the stock market risky?
Yes, there is a risk when investing in the stock market. Although stocks are riskier than keeping money in a savings account or by accumulating a Certificate of Deposit (CD’s) with a fixed yield, they have historically had higher returns that beat inflation, thereby helping you grow your wealth. A solid financial plan that includes the stock market opens more doors of financial opportunity because you are creating an additional source of income that compounds over time. Once you start investing, your money will be working for you.
It’s not necessary to dive into the stock market with all your assets. You can start small and go slow. I recommend you start slow because as you begin investing, your knowledge expands. Create your financial plan with short and long-term goal-oriented action steps that are simple and will not cause you to stress over your decisions. Time and experience as your skills improve, help you feel more comfortable and confident in investing. Start now by using a few of the nine keys listed below to grow your wealth.
Nine Keys How to Grow Your Wealth
- Create a plan to start saving and investing as early as you can. Small sums of money add up over time.
- Diversify your investments into a broad mix of stocks and bonds. Don’t put all of your money in stocks. Use Exchange Traded Funds (ETFs) or mutual funds where they pool together a basket of stocks or bonds to diversify your portfolio and manage your risk.
- Don’t have more money invested than what you are comfortable with investing. Reduce your invested position in small increments. If you are worried or find yourself not sleeping at night, then you are too invested.
- Manage your risk by avoiding taking large losses on your investments. Remember, small losses are the best losses you can have.
- 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.
- Develop an exit strategy that will go into effect at a predetermined time, giving you the leeway and flexibility to reduce your risk.
- Keep your investment costs low. High trading costs eat into your gains over time.
- Take advantage to contribute to a retirement savings plan if offered by your employer. Start with 2-4% of your income and then increase the contribution to 10%.
- If you are not working and need money to live on, do your best to limit yourself to withdrawing four percent or less a year. In this way, you will preserve your capital for later years and be less likely to run out of money.
Investing in the stock market is an excellent way to grow your wealth over time. As you begin taking responsibility for your money, you will be setting yourself up for success because your money is working for you. Start now. By starting small and going slow, those changes over time (not all at once), would lay a strong foundation toward growing your wealth.
About Bonnie Gortler:
Bonnie Gortler, the Wealth & Well-Being Coach, is a successful stock market expert who has been instrumental in managing multi-million-dollar client portfolios within a top-rated investment firm during her over 35-year corporate career. As the author of “Journey to Wealth”, Bonnie has made it her mission to share the importance of risk management and how to enjoy true financial well-being by applying the technical and mental sides of investing. Bonnie has an M.B.A. in Business Administration and is a certified life coach. Visit BonnieGortler.com to learn more about investing, well-being, and personal development.