1. You need to monitor the stock market daily
The information provided by the day to day stock market movements isn’t as valuable as the longer term trends of the movements. Daily market swings, which can be volatile depending on the stock, often lead to emotional buy/sell decisions. Successful investing can be really boring and requires a longer-term mind set.
2. You don’t need an emergency savings
A credit card is not an emergency cash supply. You still owe interest and on large purchases, that can rack up quickly. I just had an unexpected $5,000 expense on my car ..think about that $5,000 earning 20% interest on a credit card. Thankfully, I have an emergency savings ready and waiting and I was able to pay it immediately. These savings can also be really helpful if you are laid off or any other unexpected life events. It’s difficult to save in large amounts, start with $50 p/month and increase it from there.
3. Financial Advice is for the wealthy
Shlomo Benartzi, a behavioral economist and professor emeritus at the UCLA Anderson School of Management said “Holistic financial advice — guidance focused on savings, debt and insurance, in addition to investments — can be worth an income boost of more than 7% a year”
The idea of advice is to eliminate costly mistakes and take advantage of a well-planned strategy. If you don’t do something every day, you may not know some of the rules or tactics that people who do it every day might know.
Investing involves risk including loss of principal. No strategy assures success or protects against loss. Stock investing includes risks, including fluctuating prices and loss of principal. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.