Many people dream of achieving financial freedom, but only a few actually achieve that goal. One of the factors that separates those who succeed from those who don’t is consistency, which is one of the keys to successful investing.
In the world of investing, consistency is not just about making regular investments, but also about being disciplined in your strategy and managing your emotions in the long run. That is why understanding how to achieve investment success through consistency is an important step that you should not miss.
However, before delving into the keys to investment success, you need to recognize what causes most people to fail in investing. This will help you to avoid it if you are just starting to invest or improve it if you have done the things below before.
Why do many people fail to invest?
1. Investing Without Clear Goals
Many people start investing just because they follow trends or recommendations from social media. They don’t really know what they want to achieve from their investment activities. Investing without clear goals will make the strategy undirected and easily faltered.
2. Frequently Changing Strategies Out of Emotion
There are many investors who panic when the market drops, then rush to change investment instruments without careful evaluation. In fact, strategies that keep changing just because of emotions actually increase the risk and reduce the potential for investment returns. People who are inconsistent in choosing an investment strategy will find it difficult to achieve optimal results.
3. Too Focused on Short-Term Results
Many buddies expect quick returns from investments without understanding that true asset growth takes time. Excessive focus on weekly or monthly results often leads to stress and rash decisions. Healthy investing is a long-term game that requires patience and foresight.
4. Easily swayed by Emotions and FOMO
When you see your friends making huge profits from certain assets, the fear of being left behind or FOMO sets in. As a result, investment decisions are made based on fear or greed, rather than rational analysis. Emotion-driven investments will lead to harmful decisions.
5. Not Disciplined in Setting aside Funds
Many people intend to invest, but never set aside funds regularly from their monthly income. Without a clear and consistent allocation, your investment portfolio will not grow as targeted. Lack of discipline in setting aside funds is a major obstacle in building wealth through investment.
Also Read: 9 Common Investment Mistakes You Should Avoid – Treasury
Some say that investing is not for everyone. But in fact, investment can be done by anyone as long as with the right strategy and method according to the needs and abilities of each person. Among the various challenges, consistency is the most important differentiating factor between failed and successful investments.
Investment success does not happen overnight. Even successful investors like Warren Buffett emphasize the importance of consistency in every step. Whether you’re just starting out or have been on this journey for a while, these three main keys will help you stay on track to achieve sustainable investment success.
3 Keys to Successful Investing with Consistency
1. Invest Regularly, Even if the Amount is Small
One of the biggest myths in the world of investment is the assumption that you need a large capital to start. In fact, successful investment can start from a small amount, as long as it is done regularly and with discipline. Even one of the digital gold investment platforms, Treasury, makes it easy to invest in gold starting from just Rp5,000.
Setting aside a portion of your income on a regular basis, such as Rp500,000 per month, not only builds your investment portfolio gradually, but also creates positive financial habits. This disciplined habit will help you form a long-term mindset and avoid impulsive decisions.
Strategies such as dollar-cost averaging where you invest a fixed amount every month, regardless of market ups and downs. This strategy aims to reduce the risk of missing the moment or wrong timing. Consistency saves you from the trap of procrastination and can be the initial foundation for achieving real investment success.
In addition, regular investment makes it easier for you to manage your overall finances. Compared to waiting for excess funds that may not come, you can immediately manage the investment post like other mandatory needs posts. Remember, it’s not how big you start, but how consistent you run it.
2. Stick to Goals and Strategy
One of the common mistakes novice investors make is changing course too often due to market news or recommendations from others. In fact, successful investing requires a commitment to long-term goals and strategies.
The first step is to set specific investment goals. Whether you want to buy a house in 10 years, prepare a retirement fund at 55, or send your children abroad. This goal will serve as a compass in determining the investment instrument and timeframe.
After that, choose a strategy that suits your risk profile and target time. Generally, if the investment you make is long-term, then gold can be one of the right instrument choices. Gold has long been known as a stable and safe asset that is resistant to inflation.
The key to successful investment is to remain consistent even when the market is not friendly. A well-thought-out and goal-driven strategy will help you resist the temptation to panic when the price drops or excessive euphoria when the market rises.
3. Evaluate, but don’t be a slave to your emotions
Regular evaluations are an important part of the investment process. However, many people mistake evaluation as an excuse to react emotionally. In fact, one of the main principles of successful investment is to stay calm under any circumstances and make decisions logically.
It is recommended that you conduct a portfolio evaluation at least once every 6 months or 1 year. This evaluation aims to see whether the asset allocation is still in accordance with the initial objectives and whether there are changes in personal conditions that need to be responded to, such as salary increases, changes in family status, or new needs.
When conducting an evaluation, what needs to be avoided is reactive decisions due to market fluctuations. For example, selling stocks because the price is going down or buying gold because it is going up without an in-depth study. Such decisions usually lead to losses or sub-optimal results.
Emotion is the biggest enemy in investment. Therefore, you need to have a logical and structured frame of mind. That way, you will be able to act strategically, not spontaneously. This is one of the secrets of successful long-term investment that is often overlooked by many people.
Many people want to get rich quick through investment, but they get trapped in an instant mindset. They often forget that investment success is built on small habits that are carried out continuously with discipline. Consistency is the key that connects plans and real results.
Start now, because time is the best friend in the world of investment. The earlier and more consistent you start, the closer you will be to your financial dreams. Make consistency a lifestyle, and feel for yourself how investment success will come naturally.
