To start investing you really only need to do two things.
- Visualize your End Goal
- Take Action
I remember when I was a teenager my swim coach would tell me to visualize the race before it began. Think about a good start, visualize nailing your first flip turn, and picture yourself kicking into high gear.
Allow yourself to be greedy for a moment. Don’t consider what you think you could potentially obtain in life, actually think about what you want to obtain. If you really don’t have a strong desire for something, that’s probably the reason you haven’t begun investing in the first place! But try for a moment to really think about your end goal. How badly do you want to achieve this goal?
Let’s say you have lived a simple life, you are 32, and have always thought that owning a cabin on a lake with a boat would be the absolute dream for you. Great, but most people stop there. I challenge you again to think deeply about this cabin. What does it look like? Who is there with you? What’s inside? Is the location significant? Don’t think about the price for the moment – just think about what you would enjoy.
Now most people would instantly start thinking what could go wrong. Stop yourself, the important first step is being excited about what can go right. While you must visualize the end goal, you must also see yourself executing with perfection. Imagine the market is crashing, quality companies like PepsiCo, Apple, and Visa are also in a free fall. See yourself taking a deep breath, and finding ways to save money with the plan of buying more shares while prices are cheap. Ignore the market noise and panic, because emotions tend to be overblown. Picture your consistency: Exhibiting discipline and putting money away each month, building up the habit of continued investment, and exercising control over your financial future.
“Picture your consistency: Exhibiting discipline and putting money away each month, building up the habit of continued investment, and exercising control over your financial future”
Whenever you can have success, you can also have failures. Failure is an essential part of the journey to success – so I can promise that along the way you will fail. This is where your persistence comes into play. Without a strong understanding of your end goal, you will more easily give up as soon as a failure comes into play. People aren’t naturally irresilient, but if they have no sense of purpose or goal they may fall more easily when pushed.
Come up with a small financial goal. In order to obtain this you must either earn more or spend less. Let’s say you have a vacation coming up and you typically spend X amount of dollars. Well, pocket 20% of what you were going to spend and put the rest it in the stock market. Do it now.