The most difficult aspect of executing a financial plan is maintaining discipline and staying motivated enough to making better investments as you gain wealth and experience. Some might say that it’s actually taking the decision to make better choices, but the truth is told, there’s nothing more disheartening than seeing a perfectly healthy financial portfolio fall prey to complacency.
Once you start investing, things like keeping a track of all your finances, or understanding how a market correction has affected your portfolio, could become a tedious task. In times, like these, it’s imperative to stick to your guns and stay positive about the end result, and not to hold hands with negativity. Being financially secure is directly linked to better mental wellbeing, and this holds true the other way around as well. Only when you are mentally at peace can you make smart financial decisions.
Here are 3 ways to stay motivated even during the most challenging times of your financial journey.
- Realize Why You’re Investing: It’s highly unlikely that you started your financial planning journey without a concrete reason why. Financial planning is no joke, and if you’ve gotten yourself into it, then you’re in it for reasons that are important to you and your way of life. If the market tanks, or if a few investments didn’t do well, or, in the worst case scenario, your portfolio needs a complete overhaul, there’s no margin for you to get emotionally affected by it. Keep your feelings and your investments far away from each other. The market is a volatile entity it will continue to fluctuate like it always has. But no matter what happens, always keep your eye on the target, which is to work towards achieving your personal and financial goals. Stay headstrong and don’t let emotions stray you from your path.
- Create Your Mini-Goals: While setting realistic long-term goals is a key part of financial planning, it always makes things a little more interesting to break these down into smaller simpler goals. How? Well, to start with, you get more reasons to celebrate more often. You don’t have to wait for years to acknowledge the fact that your efforts toward a better financial future are working. Secondly, life does not have a linear path. As time goes on, you may feel like going on a sudden vacation, or learning a new hobby, or starting a family. When you make mini goals, you have the option of adding these pit stops on your financial planning journey.
- Keep Your Head Up High: It’s practically impossible for any financial plan to be perfect. Every investor is bound to face a few speed bumps on the way to financial independence. The good ones make mistakes and setbacks in their stride, learning from them and avoiding those mistakes again. As the old adage goes, ‘There’s no use crying over spilled milk.’ Instead, talk to your certified financial planner and see how you can rebalance and/or modify your portfolio to better suit your needs.
Another important thing to note is that you should not feel alone on this journey. Keep your loved ones involved, and always be clear and transparent with your personal financial advisor. Remember that they are always there to support you and help you make better financial decisions than the ones you’ve made before.