When it comes to money management and investing, many of us fall into behavior patterns. We become accustomed to certain practices—certain habits—whether they’re good for us or not. Since spring is here, it may be time to “spring clean” beyond our closets and cupboards. Why not spring clean our investing habits?

To me, spring cleaning your investing habits means “out with the old and in with the new.” It also means fixing what is broken—repairing the practices that do not serve you well. Keep in mind, every person’s financial situation is different, so it’s always a good idea to consult a trusted financial advisor before making any major decisions. That said, here are 5 general ways many people could improve their investing habits:

Stop Being Impulsive

It is human nature to run from danger when we perceive it, and that’s what many investors do when the market is on a downward trend, or when they read a news article that says, “We’re due for a crash! Time to sell!” I’ve talked about this in past blog posts, and I’ll reiterate it again: making impulsive investment decisions is unwise and can get you into trouble. It is a much better strategy to simply ride out the market’s ebbs and flows than to make hasty decisions based on emotions or short-term market fluctuations. To spring clean your investing habits, it’s essential to cultivate patience and discipline. Avoid reacting impulsively to market volatility and sensational news. Stay focused on your long-term financial goals and stick to a well-thought-out investment plan.

Do Not Monitor To the Minute

Today, we have access to the market’s performance at all hours of the day. But is that a good thing? When you see a dip in the market, you might start to panic and feel compelled to take action. In other words, constantly monitoring your investments can lead to impulsive decisions. It’s important to remember that investing is a long-term game, and short-term fluctuations are normal. Checking your investments too frequently can cause unnecessary stress and may lead to making emotional decisions. Consider setting specific times to review your portfolio to avoid reacting to every single market movement.

Take “Doom and Gloom” Media in Stride

The media loves sensationalizing market downturns and predicting the next crash. While staying informed is a good thing, it’s essential not to let this bombardment of negative news sway your investment decisions. Remember, the media’s goal is to capture your attention, not provide personalized financial advice. Instead of reacting hastily to every news headline, focus on the long-term fundamentals of your investments.

Be Consistent

When it comes to developing better investing habits, consistency is key. That might mean setting up an automatic investment plan or consistently contributing to your portfolio. By sticking to a well-thought-out strategy and avoiding knee-jerk reactions, you can increase the likelihood of achieving your financial goals. Remember, successful investing is about discipline, patience, and sticking to a plan tailored to your unique financial situation.

Trust the System

It’s true that the market has had its ups and downs, including some precipitous crashes, but history shows us that it always bounces back and continues to grow. It’s essential to maintain trust in the investment system despite market uncertainties. Remember that market downturns are a normal part of the investment cycle. By believing in the long-term growth potential of the market and having faith in your investment strategy, you can avoid making hasty reactions based on short-term fluctuations.

This spring, I encourage you to take a proactive approach towards tidying up your investing habits. Remember that consistency, patience, and trust in your investment strategy are vital for long-term financial success. Embrace the concept of spring cleaning not only for your physical space but also for your financial well-being. By making thoughtful decisions, staying informed without being swayed by sensational news, and prioritizing disciplined actions, you can work towards achieving your investment goals.

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