5 Ways Being Scared Can Make You a Rich Investor
One attribute usually overlooked when it comes to being a rich investor is the need to feel fear.
When we think of rich people, we usually think of individuals who took on a lot of risks, launched enormous businesses and accomplish it all without fear.
We frequently associate traits like bravery, assertiveness, and boldness with accumulating wealth, but a healthy amount of fear is less talked about.
Here are 5 ways being scared can make you a rich investor.
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1. Only invest money you can afford to lose
Being afraid when investing is normal since no one wants to lose money that they have worked very hard to gain.
Fortunately, you may use this sense of fear to your advantage and become a top investor. To only invest with funds you can afford to lose is one of the best pieces of investment advice. This is because you act differently when you are not as emotionally invested in your investments.
By investing with money, you can afford to lose, for a more long-term investment strategy, you can considerably improve your prospects of future prosperity.
2. Doing thorough due diligence
The finest investors are aware of the delicate balance between action and due diligence. People who think and research too much tend to become victims of inaction. They might as well be playing blackjack with their money instead of investing it in the market if they do not do enough study.
The nervous investor tends to favour the former and benefits handsomely from their decision.
All of this is to suggest that when you invest and are worried, you will spend more time analysing the assets you acquire.
3. Automating the contributions
Now, it may seem easy to make your monthly investment contributions, and it is. Simple things aren’t always simple, though. Anyone may execute a trade order, but it can be difficult to remember to do so each week or month over the next 40 years.
Most timid people, employ automated contributions. These days, you may set up an automated withdrawal from your bank account into your investment account in a matter of minutes, which will purchase the assets you have already chosen without any further action on your part.
4. Over-contributing for retirement
It is not ideal to have no retirement savings, and for the naturally fearful retiree saver, their greatest asset is their dread of never being able to retire.
Thus, the scared among us contribute too much. As a retiree saver, overcontributing has three clear benefits.
First of all, it guarantees that you will have the money available to you that you’ll need in the future. Second, you will have to inform your employer much sooner than you had originally planned because it will inevitably speed up your retirement savings process.
Last but not least, it relieves you of the emotional burden that retirement savings will place on you because you will be able to face unforeseen costs and changes in your future lifestyle if you over save.
5. Investing in the stocks you understand
Warren Buffett will advise you to only invest in stocks that you fully comprehend if you ask him. This is the reason why the investment tycoon has long shied away from bitcoin.
Whether they realise it or not, scared investors often follow Buffett’s advice and conduct a thorough study before even a single note leaves their bank accounts out of concern that they would lose money on a stock they are unfamiliar with.
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