BlogTune-out the Noise and Develop a Plan to Guide You
Posted about 2 months ago

Tune-out the Noise and Develop a Plan to Guide You

Planning

The financial and economic pundits in the news media want you to believe their predictions for the future are certain to come true. They guess on things that they say will have an impact on your financial well-being such as the outcome of presidential elections, the direction of interest rates, when the market will reach a top or a bottom, and the list goes on. I call all of this market noise.

When it comes to your financial well-being, your own behavior and the decisions you make on things you have control over will have the biggest impact on whether you succeed at reaching your goals. However, if you do not have a financial plan to guide you and keep you on track, you may be swayed by those pundits and make emotional decisions that are wrong for you.

Some of the things you have control over that will significantly impact whether you reach your financial goals include the following:

The percentage of gross income you are saving towards retirement

Investing in your career

Having sufficient liquidity

Avoiding consumer debt

Owning the right-sized home

Being tax aware and tax efficient with your financial decisions

Having a properly diversified investment portfolio

Rebalancing your investment portfolio periodically

Keeping investment expenses low

Keeping your emotions in check during market tops and bottoms

Use the following links to read the three part series of articles I wrote about having the right mindset and focusing on what you can control.

A Mindset for Financial Success

5 Behavioral Principles to Master for Financial Success

5 Technical Principles to Master for Financial Success

Published in Member Blogs, Uncategorized

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