Part of reducing your grocery budget means freeing up MORE money to help you succeed {better} in other areas of your life – from starting your children’s college fund, to paying off debt… perhaps investing MORE (or, even just starting your saving/investing) ~ 

Having a window of opportunity where you can free up money is such an enjoyable feeling ~ I’m not sure if you get excited but I get so excited to find ways and avenues that allow me to save more each month. I don’t mean to toot my horn but I’m a numbers person and I am great at looking long term.

Who else gets super geeky about having money to put in the bank?  Not many I don’t think.. I know, it’s weird and I’m a geek but that’s ok.

It is a wonderful feeling when you can challenge yourself to start investing … or adding more to your investments.

To be able to age with security in knowing that you have taken care of yourself without having to rely on someone else to do that, or without having to work a job – that is life changing! (at least that is to me… perhaps I’m the oddball!)

When putting away long term (I’m talking investing – not a regular savings), there are 6 things that are always important to remember. Whenever we mention investing, I always see comments thrown around ~

“Where does one get THOSE returns?!”

“HOW am I able to invest when I can barely survive between paychecks?”

“Retire?  I DOUBT I will be able to do that..”

It is possible, but it’s an emotional mindset. You have to put saving as your emotional priority – until you do, you will always find a reason to not be able to ~ it will never be a possibility.

Find a way to pay yourself just like you pay everyone else.

Look past the traditional institutions — you will always assume the Bank has your best interest at heart, and you may be that person 20-30 years from now that looks back and wishes you would have made that single decision that could have changed your entire life.

Let me share a secret with you that might make you a bit uncomfortable:  you won’t retire by putting your money in a traditional bank account at 1-2% interest – it will not happen!

Although I am far from being an expert, one thing I have done is made investing a priority in my family – from myself to my spouse, even my kids ~ 25 years going, I am so glad that I have had the vision of looking long term. Nobody else in my house has that mindset though – opposites attract, so while I might, my husband does not.

All in all that’s ok though – because as long as he’s married to me and I’m still kicking, then he’s got it covered.

6 Tips for Investing Long Term

Be Consistent

By saving monthly you will pick up the peaks and the lows ~its easier to invest in smaller amounts than large amounts (especially when considering that many people can’t commit to larger amounts!)

By investing consistently you will pick up the highs and lows that come with the market fluctuations.

Know your Timetable

If you are in your early 20’s or 30’s, your timetable for investing will be much longer than those who might be in their 40’s or 50’s – you’ll want to make that money work harder for you by diversifying your funds, to take some higher risk (and hopefully a higher return long term!)

When I started, I invested 75% of my contributions into high risk accounts ~ I was able to do that, and I’m so glad I did.  Back then I was in my teens, so I had plenty of time to rebound from any hits to the market.

Accept that Investing is a Long Term Commitment

When you decide to put away .. accept that investing in the market is something that you do long term. Do not expect huge results after a few months. What is important is that you leave your money to work for you for years – and by years I mean 5 years or more.  If you are not prepared for that, then you are not going to win with your investments.

Automate

Put your savings/investing on auto pilot – don’t depend on yourself to do it monthly until you automate it with an automatic transfer that comes out once a month or, each pay period.  Start with something small and adjust – you won’t miss that money if put it on automate.

Increase with Time

Did you get a job promotion? Did you earn a bonus at work? Explore ways to increase your contribution and edit your automatic transfer to bump up $10 – $20. You are making more — obsess over this raise, because this raise in income can ultimately make you more financially secure with time.

Accept Fluctuations

Yes – large returns are possible.  And no — you will not earn 12% by putting your money in an regular savings!  To succeed with investing you will need to accept and take risks – the market can provide huge returns {over time!}, but you need to be willing to accept the highs and lows that come with the ride.

One thing I do not do is assume that my contributions are going to grow huge returns in short time frames – some of my investments have been going for 25 years. A drop in the market is exciting to me – it means that my money will go much farther to buy more for less.. when the market hits a peak, I’ll scoop up and multiply my contributions ~ it really is a glorious concept. 

You also have to remember though that I still have about 20 years until I hit retirement – so I can realistically still afford these dips, too.

Do you invest? And if so, do you have any advice for investing long term? 

What has helped you keep your mindset over the years?