Two Key Investment Points to Share

When it comes to investing, there are two key points that can be greatly misunderstood or glossed over, but they are essential to know for your long-term wealth building success.

Usually many students, and beginning investors, only remember to focus on the investments part, often overlooking the two key points of emotions and planning.

1. Emotions - it's the main challenge of great investors as it's not just about managing risks, but it's first managing their emotions as they plan for their investments. We are emotional beings, and our emotions can drive us. Therefore, we need to be self-aware to manage and be in control of our emotions to succeed in what we are wanting to invest in.

2. Planning - great investors have plans, they don't just act on their emotions. Rather, they control their emotions by having clear plans for their investments. Often, it's how one invests that will better predict their successes, more than what they actually invest in. Don't let your emotions control you. Control your emotions, risks, etc., by having a plan! Investing is not about luck, like gambling, it's about preparation and risk management, both of which are parts of having a clear plan.

Planning helps us to take control of our emotions. It's the single key to your investing success now and well into your future.

Like personal finance, we (the "personal" part) should be the ones driving our finances, not the other way around. So, when it comes to investing, we cannot control the market, but we can control our risks and how we react to the market opportunities. How we can control our reactions, specifically our emotions, are dictated by us having a clearly thought-out plan that includes how, when and what to invest our time and money in.

For insight and education about this, visit my YouTube channel, Get Personal with Finance, and join our free learning community.