So you’ve decided you want to invest? As I discussed in our last blog, making the change in your spending habits from either a frivolous or frugal spender into an investor can be difficult. To give yourself the best chance in these first moments consider managing your mindset through these following avenues.
1. Distinguish between NEED and WANT.
Getting the obvious out of the way, often we don’t need the things we want. The key thing to do is distinguish between what you need and want in the most clear cut way. Wants should be categorized into a budget, set aside so you don’t burn yourself out and effectively ‘punish’ yourself in order to invest.
This isn’t about depriving yourself of nice things, we’re building a better future, not destroying your sense of enjoyment in the present. But ensuring you don’t get ahead of yourself makes investing much easier and reduces the risk of temptation to sell your positions in order to fund yourself in the short-term.
2. Beware the shiny marketing campaigns
We’ve all been there, enamoured by a colourful sticker, or the big red savings label in-store or online. Part of changing your mindset is making yourself abundantly aware that these are tricks. How often have you bought something you absolutely don’t need because you saved yourself 50% off that sticker price.
Remember, savings don’t translate into unnecessary purchases. Keep your mind focused on what you’re actually looking to buy. Make a list before you go grocery shopping and only buy something on offer if it's already on your list.
Additionally use watchlist websites such as https://camelcamelcamel.com/ for items on Amazon. Tools like this allow you to receive alerts when items you’re looking to buy are at their best price. A fantastic way to get the best deals and use those shiny marketing campaigns to your advantage.
3. Limit your consumer footprint online.
Stop liking commercial business pages on Facebook. Liking pages such as Nike, Cheetos, Coca Cola and Gucci increases the effectiveness of the ads shown to you. The more detailed your consumer profile online the more likely you’re going to see something perfectly designed to make you buy.
4. Stop comparing yourself to others.
This one is easier said than done, but stop. Think about the intricacies of everyone else's life and realise you’re never going to understand everything someone has been through, is going through or is dealing with.
Now apply this to the fact you can never truly see how successful someone is either. You won’t ever be able to accurately identify how hard they’ve worked, how lucky they’ve been and how long it will last.
At the end of the day it’s all smoke and mirrors, the truth comes out in later life. Focus on producing the best results for yourself in the present moment and only use your past self as a benchmark for improvement.
5. Be influenced by positive behaviour
Surround yourself with positive sources, follow accounts that give great motivation to you and your journey. Talk openly with friends and discuss your financial journey with all walks of life. You’ll be surprised how many people out there are on the same path as you and sticking together is the easiest way to maintain your trajectory with positive reinforcement.
Bear these simple remedies in mind on your new journey. Remember success does not come overnight and it doesn’t happen in a perfectly upward trajectory. Educate yourself, learn from any and all mistakes and be prepared to adapt.
Take control of your mindset, learn some of the basics and get the confidence to start investing today.
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