Part 2 of 2: Six Life Principles That Also Apply to Investing
By Jeffrey Meenes, CFP® (Published Date March 7, 2024)
Beyond returns, a good investing experience depends on how you feel on the journey — just like in life.
Part 2: Investing with Wisdom - Life Lessons for Long-Term Success
In Part 1, we explored how life lessons can guide us through the uncertainties of investing. Now, let's delve into three more principles that bridge the gap between life and building a fulfilling financial future:
Harness the Power of Compounding
Think small, think long-term. Just like consistent training leads to marathon success, even small, regular investments can grow significantly over time thanks to compounding. Start early, contribute consistently, and watch your wealth snowball. Remember, even seemingly insignificant steps can lead to remarkable achievements.
- “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.” ― Albert Einstein
Control What You Can Control
Life throws curveballs, but you can control how you prepare and react. Just like building an emergency fund prepares you for unforeseen expenses, a well-defined investment plan helps you navigate market fluctuations. Focus on what you can influence - your savings, risk tolerance, investment strategy, and a comprehensive financial plan - and let go of the rest.
Tune Out the Noise
Opinions are plentiful, but success lies in following your informed plan. Just like ignoring unsolicited exercise advice, don't let emotional reactions or market noise sway your investment decisions. Do your research, trust your strategy, and remember: short-term volatility is inevitable, but long-term goals require unwavering focus.
Investing isn't just about chasing returns; it's about empowering your future. By integrating these life lessons into your investment journey, you can build a plan that reflects your values, withstands uncertainty, and ultimately helps you live a richer, more fulfilling life. Remember, the best investment strategy is the one that aligns with your unique goals and empowers you to make informed decisions, even when the future seems unclear.
This concludes our two-part series on life lessons for investing. We hope that you can now view your financial journey through a bit wider lens and make better choices that align with your overall life goals. Remember, the path to financial freedom is paved with knowledge, discipline, and life's wisdom.