1. CREATE A WRITTEN PLAN AND FOLLOW IT
What are the advantages of having a written plan?
1. Writing your plan down forces you to make decisions that you might never have thought about when your plan was just in your head. Your “mental plan” is probably far less complete than you think.
2. A written plan helps you conquer the tricks that your mind and the stock market play on you. Once you commit your mental plan to paper, you will have a solid road map to follow in times of doubt, stress, and volatility, which are the major contributors to the state of mind that causes the most financial damage: panic.
3. Referencing a written plan helps you to visualize your financial goals and remind yourself of what you want. It keeps you focused on how much to save in order to achieve financial security.
4. A written plan helps you overcome “overconfidence bias”, the feeling that not only can you do it, not only can you handle it, but that you are better than average. Many research papers1 have shown that all of us have the behavioral bias of overconfidence.
You Won’t Get Rich in the Stock Market…Until You Change the Way You Think About It Description:
Are you tired of being bombarded by people promoting get-rich-quick schemes?
This book cuts through the nonsense, distilling 20 years of the author’s experience down to what you really need to know. As the title says, it shatters misconceptions and gives you a step-by-step plan to achieve financial independence.
