This month I thought I would share with you some things I’ve learned about money over a 22-year career as a financial advisor and financial planner. I hope that you will be able to learn many of these lessons for yourselves. I believe that the earlier in life you learn these lessons, the wealthier and happier you will become.
So, here they are!
• The Joneses aren’t as rich or happy as you think they are.
• Get rich quick and get poor quick are two sides of the same coin.
• The more complicated the investment advice, the less useful it is.
• Time is a scarcer resource than money.
• Ask about anything you don’t understand.
• Admire people who earn more money than you, not people who spend more money than you.
• Forecasting is for the weather.
• You don’t need to be a math wizard to make good money decisions; financial success is 5 percent intelligence and 95 percent discipline.
• There is an inverse relationship between investment performance and time spent watching financial news — turn off CNBC and throw away that Money Magazine!
• Invest in your mind and your skills first
• A penny saved is more than a penny earned.
• Your life is a better benchmark than the S&P 500.
• Market corrections come more regularly than birthdays — expect them.
• Compound interest is the eighth wonder of the world. Set yourself up to benefit from it rather than battle against it.
• You don’t have to be rich to invest, but you have to invest to become rich.
• If you’re excited about an investment, it’s probably a bad idea.
• Start saving for retirement as a teenager, not when you are in your 40s.
• It’s time in the market, and not timing the market, that produces the best results.
Scott Johnson is the CEO of DecisionPoint Financial LLC. He is a CERTIFIED FINANCIAL PLANNER™ and an Accredited Investment Fiduciary. He and his firm provide comprehensive financial planning and investment management services to individuals and institutions. Scott can be reached at (480) 553-6249 or scott@dpplanners.com. Visit decisionpointfinancial.com. DecisionPoint Financial LLC is a Registered Investment Advisor. All investments involve risk. Risks associated with investing in securities include increased volatility and loss of principal. Past performance is no guarantee of future results. The information herein is educational in nature and does not represent investment advice. All rights reserved. DecisionPoint Financial LLC © 2021.