Investing is stressful. It takes sound mental decisions to weather the ups and downs that come with the markets and investing in general. Whether you are managing your financial portfolio or making investments on the side, staying mentally healthy may assist with good decision-making. Below are a few simple mental health tips to help investors remain centered.
1. Visualize the Results of Long-term Investing Goals
Waiting is one of the very mentally challenging things when it comes to investing. Putting out the money in hopes of getting to a long-term goal may be mentally exhausting for some. When you make a long-term investment, consider visualizing the long-term results. That way, you mentally enjoy the feeling of getting to that goal even while your money is still growing.1
2. Develop a Financial Roadmap
Failing to have a plan results in increased anxiety and uncertainty in some situations. Consider your financial journey like a long road trip. Determine your starting point and where you would like to be down the road each step of the way. Identify the amount you want to invest at each stop and how it may get you to your ultimate goal. With a plan in place, you may be more relaxed as you move through the process.1
3. Understand That Uncertainty is Inevitable
Even with a well-rounded plan, you should expect some level of uncertainty. Surprises and setbacks may occur, but if you know that this is a possibility when you go down your financial path, it may be easier for you to handle these issues with less anxiety and stress.1
4. Do Your Research
Just as you have researched how to plan for your financial roadmap, research your investments' possible downturns. Look at the past trends in your investments so that you have a better understanding of what you might expect if they were to take a downturn. This may also provide you with better insight into the ideal course of action in these situations.2
5. Find Some Support
As with anything in life, a strong support system helps you make it through the more challenging times and provides you with the advice you need to keep going in your desired direction. Find an investing support system, whether it is a group or an individual. Running scenarios by them may help you alleviate some stress, and sometimes you just need to bend someone's ear to feel better.2
6. Cut Out Background Disturbances
It may be tempting to try and stay on top of trends in investments through various financial media outlets. However, in the end, following these too much may result in too much noise and confusion. If an analyst has a negative take on one of your investments, you may begin to panic and not realize that other opinions may be more favorable.2
1 5 Beginner Investing Tips for a Healthy Headspace Kiplinger, https://www.kiplinger.com/investing/604008/beginner-investing-tips-healthy-headspace
2 5 Tips to Ease Investing Anxiety, USNewsandWorldReport, https://money.usnews.com/investing/investing-101/articles/2018-05-11/5-tips-to-ease-investing-anxiety
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 information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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