Sticking It In [Stock Market Investing]
I’m talking about the perfect, 10/10, sexiest opportunity that you’ve ever laid eyes on. You and everyone else is literally dying to stick it in. Why? Because emotions play a large role with investing. The problem with being a novice at sticking it in is that we typically only have the confidence to stick it in when EVERYONE else wants to stick it in.
There are 2 obvious problems already: (1) do NOT let your emotions play a role in your investments and (2) EVERYONE else’s opinions and actions do NOT matter. The solution sounds so easy, but I promise it’s one of the most difficult lessons to learn… emotions don’t play a role when you have a plan and you follow the plan.
Dirty Little Action Steps:
1: Consider asking yourself “who, what, where, why, when, and how” next time you want to stick your money in. For example, how does sticking it in still align with my goals, why am I sticking it in (401k, IRA, real estate, etc.), or am I sticking it into the wrong places (a house, cars, lifestyle, “things”)?
2: Next time you think about sticking it in, do yourself a favor and turn the fucking lights on (have a plan, review your plan). Who knows, maybe this will help you avoid some shit.
3: Dollar-Cost Averaging (DCA) by definition is when you place a set dollar amount into a certain investment on a consistent basis (ie: $200 per paycheck into a retirement account). Benefits: automatic, emotionless, you purchase more when the market is low, and you purchase less when the market is high.
Dirty Little Secret:
If you have no clue of how to stick it in but you really want to start, then a simple solution offered through most employer retirements is a target year retirement account. If your employer offers an employee match, then getting that match is a no-brainer (FREE MONEY). Setting up your workplace investment is a good way to consistently save towards retirement with money from every paycheck (DCA method). If you wish to invest outside of a 401(k), many brokerage firms offer target year retirement funds as well.