- Contribute to your employer’s retirement plan: You’re simply paying yourself first and because it happens automatically, well out of sight out of mind. You may think you can’t afford to do it based on what you make, but give it a try. You’ll likely surprise yourself.
- Index: I think anyone who invests should index at least some of their money. It’s automatic diversity and the long-term prospects are undeniable.
- Diversify: When it comes to individual stocks this is a bit more subjective but the more diversity the less exposed you are to any one particular asset which really helps you sleep at night.
- Keep doing it: Like anything else, the longer you invest the better you get at it. You become more confident in your ability, what you are doing and why you are doing it.
- Go long: The longer your timeline the better off you are. Investing knowing that you don’t need any of that money for at least the next five years allows you to make better decisions without subjecting yourself to the vagaries of the stock market. It really is a marathon and not a sprint.
- Know your why: Investing is about achieving a goal. Understanding why you are doing it and what your time frame is will help you keep things in perspective.
- Have a support system: Whether it’s one friend, a network of friends, a social media outlet, an investing community or something else have a support system that you can rely on when you need it.