Often when it comes to investing people can get distracted with details, charts, information and misinformation for that matter. It’s important that we focus on the essentials, so that we get done what we need to, without wasting time and making investing a chore. Our main goal is to achieve long-term financial freedom. This short post will highlight a few methods to make sure you are keeping it simple. Here are three things to focus on to reduce the noise and simplify your investing.
Simply your Goals – Understand your goals from the beginning. Do you want to retire young? Do you know how much you need? If you don’t have a goal you’ll never know when you can retire. Set your goal first!
Keep Your Investments Simple – Invest in things you can understand and feel comfortable in. Understand that all investments have risk, but some are riskier and more complex than others. Keep your investments simple find a good mutual fund, lifecycle funds or ETF, but stay away from the more complex investing options.
Automatic Investing – Establish regular investing patterns. Setup your investment account to automatically transfer the money before it hits your bank account and you won’t “miss” the money. Going forward when you get a raise and want to increase your investing it will be easier to increase your automatic contributions without it ever touching your bank account.