Achieving your financial goals has more to do with healthy financial habits than getting in early on the next blockbuster IPO. While it may not make for exciting cocktail conversation (do you really want to be that person anyway?), avoiding financial pitfalls is more important than making "genius" investment moves.
By definition, successful investors are those who have achieved, or are on the road to achieving, their financial goals. Therefore, having goals and a plan are prerequisites for success. Pitfall to avoid: failing to plan.
While each one of us may have separate and distinct goals, the basis of achieving our goals is common to most...living below our means and investing the difference. Taking advantage of compounding by starting early does much of the heavy lifting. Pitfalls to avoid: spending above our means, and procrastination.
Every day brings new headlines and their resultant effect on the markets. While counter-intuitive, volatility can accrue benefits for the long-term investor, especially when making regular investments such as in a 401(k) plan. Pitfall to avoid: allowing volatility and emotion to effect our investment decisions.We hope you found this "hot tip" useful.