Investing is a scary word for people and I totally get it. For the longest time, I held off on — or didn’t even think of — learning how to invest. I brushed it off as something that only worked for wealthy people who didn’t flunk out of their freshman year algebra class. However, life brought me to a point where I no longer wanted to fall victim to what I didn’t know, and I forced myself to learn how to invest. Thankfully, I had already been applying minimalism to my life and was shocked to see how these two things go hand in hand.
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The absolute first thing to do before learning to invest is of course first learning how to understand your money and how to make it work for you.
Before you begin learning how to invest, I highly recommend getting these areas of your finances set up on autopilot:
If you aren’t quite sure how to begin paying off debt or budgeting, I highly recommend starting with my Minimalist Budget + Debt Payoff Playbook.
This is an all-in-one toolkit designed to help you simplify your money and also teaches you the basic steps to paying off debt in a simple, speedy manner.
The core of minimalism is learning what stuff, places, people, etc. are actually enhancing your life and then working to eliminate anything that doesn’t align. When you apply this type of mindset to your entire life, you naturally find yourself less tempted into spending on frivolous things. Therefore, spending less is a natural bi-product of wanting less.
Because you have less desire to bring more stuff into your life, you free up more money that can be put to better uses, like investing. Of course, it’s not always easy to learn how to cut back and kick the habit of splurging, even if you desperately want to live a more minimal life.
If you are someone like me who struggles with overspending on shopping, I highly recommend downloading my FREE Shopaholic Survival Kit where I share with you my 5 best strategies for spending smarter and saving more!
I went from someone who used to pre-spend entire paychecks to someone who learned to make an additional $12,000 just by making a few tweaks to hubby’s 401K, diversified my own Roth IRA, and even started helping my kids invest. Read The 5 Minute $25 Investment Plan for Kids
When it comes to shopping or making purchases of any kind, minimalists are quick to slow down the thought process and delay gratification to make sure they are getting something they truly want.
When it comes to investing, this can be beneficial because you are no longer a stranger to slowing it down a little. Once you have learned to slow down your impulses, you begin to make smarter choices.
Whether you are a minimalist or not, one of the best ways to make a smart investment decision, is to sit down with an experienced financial advisor who can help you create an investing game plan just for you. Click here to find a financial advisor in your area.
Another common mistake that investors make is bailing on investing when the stocks go down or a recession hits. Time and time again the stock market has shown that after a dip (that causes people to pull out) there is a period of major growth.
People who pull out their money when things look scary are more likely to lose out big time once the market climbs again. This is where the benefits of practicing delayed gratification can be incredibly beneficial.
Living a more minimalist lifestyle often inspires us to simplify not only our
Long term investing requires time to make a quality plan and then, allowing your investments to become automatic so that you aren’t spending every single day thinking about and focusing on them.
Again, one of the best ways to save time is to cut right to the chase and begin working with a financial advisor who can help you make the best decisions when it comes to your investments without you having to spend hours trying to figure out how to do it on your own. Find a financial advisor that meets your needs.
More posts on minimalism:
People often think that they don’t have enough money to begin investing. Minimalists often understand that
Often times people believe the myth that once they have more money, they will be able to begin investing. In reality, learning how to properly manage and invest the money you have right now (no matter how small), is the best way to instill those habits that will allow you to grow wealth as your income grows with you.
Investing doesn’t have to be complicated, but a lot of people make it that way. Minimalists, tend to have already gained a great appreciation for simplicity and not over-complicating things.
Remember, money doesn’t have to be as complicated as a lot of us make it out to be.
The best game plan is to get connected with a financial advisor who can help you chart a game plan for how to get more money out of your current income so that you can begin planning and investing for your financial future. Get connected with a financial advisor near you.