If you turn on almost any financial news network, you’ll see something that looks straight out of The Matrix. Numbers and symbols, charts, and tables. It’d be easy to conclude that data and metrics are the most important investing elements. But they aren’t — YOU ARE!

The media wants your attention, and they want to keep it. To get it, they focus on the short-term, often exaggerated events, risks, and rewards. But we believe most of this is noise and will only encourage investing behavior that is more likely to hurt returns than help. Here are some tips for investing better in a noisy world!

Stay Invested — 

there’s an old adage, “time in the market is better than timing the market.” Like many sayings that have survived, there’s a lot of truth to it. As humans, we evolved during times of scarcity, when short-term survival trumped everything else. 

The world has changed a lot, but those instincts remain and can lead to detrimental actions to long-term investing results. Consistently timing the market is difficult (if not impossible), and trying can lead to missed opportunities, increased fees, and added stress. Stay invested and let the market work for you. This chart illustrates the impact of missing the best days:

Harness the Power of Compounding — 

Einstein is credited with saying, “compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.” This may seem like an exaggeration, but compounding is the most incredible tool an investor has.

Imagine investing $50,000 and earning 7% each year. After one year, your $50,000 investment is now worth $53,500, a gain of $3,500. Another year flies by, and the portfolio is now worth $57,245, growing $3,745. The growth accelerated because you earned interest on your original investment and the previously earned interest. Let’s fast forward to year ten. A decade of 7% returns yields a portfolio worth $98,357.57, with the final year adding $6,434.61. Pretty impressive, right?

And what happens after another decade? At the end of 20 years, the portfolio is worth a whopping $193,484.22. The sooner you invest, the greater the force compounding will be.

Prioritize Self-Worth — 

Money is important, but it isn’t everything. We want money to be the ultimate quick fix. Phrases like “if I only made more money” or “if I made that much money, I’d be happy” are commonplace. Yet, when we look at those who have seemingly endless pockets, some of them are miserable too.

 A study on the link between wealth and happiness showed that emotional well-being increases until about $75,000, at which point progress stops. For those pulling themselves out of poverty, an increase in income could relieve stress and increase happiness. Having a stable place to live, access to meals, and other basic human needs met is a huge relief. But for most people, greater satisfaction needs to be found elsewhere. 

Increasing your self-worth could be the ticket to growing your net-worth as you become more confident, empowered, and happier. 

Be Directionally Right — 

You don’t have to be perfect; nobody is. And life is full of surprises. Things will change throughout your journey, and so will you. Revisit your goals, and don’t be afraid to make a change. 

When you make a mistake, don’t beat yourself up. Focus on righting the ship and being directionally right. Celebrate those small victories. If you’re a long way from reaching your goal, look back to see where you started, you might be surprised at how much progress you’ve made. Small victories add up; they compound.

Answer the Powerful Questions — 

What is wealth? What is freedom? These questions have as many answers as there are people. They’re personal. That’s what makes financial planning so personal; we all have different backgrounds, circumstances, and aspirations. 

If you don’t know what financial independence means to you, it’s worthwhile to think about it. It’s a great way to reflect on your values, think about what’s meaningful, and ensure your actions are aligned.

So, what does financial independence mean to you? 

Wait no more!

If you lack the funds to invest, start tackling that problem now. Figure out how you can earn more or spend less. For some, it’s as simple as paying yourself first or having funds transferred into an investment account each month before you have the opportunity to hit the mall. You could also take on a side gig to earn some moola. 

Whatever you need to do, make it happen! If you need some guidance along the way, consider working with a financial advisor, but find one that’s right for you!