They say that winners never quit and quitters never win, but that’s not really true, is it? What if you’re trying to quit a bad habit?
It’s not only okay to quit a bad habit; it’s something we should always strive to do—especially with investing. Mark Biller joins us today with a list of bad habits you should quit if you find yourself doing them.
Mark Biller is Executive Editor and Senior Portfolio Manager at Sound Mind Investing, an underwriter of Faith & Finance.
In a recent article titled “Go Ahead, Be a Quitter” at SoundMindInvesting.com, six bad investing habits are discussed as they explain why quitting them can lead to better financial outcomes.
One of the worst habits in investing is not starting at all. Time is crucial for building wealth, thanks to the power of compound interest—often referred to as the “8th wonder of the world.” Investing in well-managed, growing businesses, primarily through stocks, has historically provided returns that outpace inflation. So, instead of staying on the sidelines, become a part-owner of corporate America by investing.
Trying to time the market is nearly impossible. Waiting for the “perfect” moment often means missing out on valuable time in the market. Over any five-year period, a diversified stock portfolio rarely loses money and frequently produces high returns. Consistency and patience, rather than timing, are the true keys to long-term growth.
Every financial expert seems to have a new doom-and-gloom prediction, but tuning into this noise can hurt long-term gains. Inflation—not market downturns—is often the biggest threat to wealth, and stocks are one of the best defenses against inflation. Instead of looking for reasons to sell, commit to investing long-term and avoid unnecessary panic.
Avoid drowning in economic forecasts, technical analyses, and frequent trades. Instead, pick solid investments and hold on to them. The simpler your approach, the easier it will be to stay the course.
Checking your portfolio daily can lead to emotional highs and lows, tempting you to trade based on short-term results rather than long-term goals. Instead, limit your portfolio checks to avoid unnecessary stress and stay focused on your broader financial objectives.
Instead of letting fear drive your investment decisions, remember 2 Timothy 1:7: “God has not given us a spirit of fear, but of power and of love and of a sound mind.” Trust in God’s provision, follow His principles, and invest from a place of peace rather than anxiety.
For more on these principles, check out his full article, “Go Ahead, Be a Quitter,” at SoundMindInvesting.org.
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