5 Smart Investing Habits For 2022

It is a new year and also the time when many set new goals and resolutions for the months to come. It is a time to access your current situation and determine just how far you want to move this year. It is the time to create investing habits that will be beneficial not just this year but the rest of your life. To help you on this journey, I have decided to share some investing tips I have picked over the years and no matter how small they might seem they are critical to you reaching your short and long term financial goals in 2022.

First you need a plan. What's an adventurous journey without a map? One of the most important as well as first step is to create a plan. You can't reach a destination without a map just so you can't reach your goals without a plan. Infact you would be spiralling for a very long time while remaining in the same spot. A specific investment plan helps you tune your mind and actions towards your goals. They are a reminder of where you hope to reach as well as an anchor that will keep you from floating away in the wrong direction. For example if you plan to buy a house, you have to figure out what kind of house it will be as well as how much it would cost you. This will help you map out a plan to buying that house within the shortest frame possible.

Secondly, stick to the plan. It is one thing to create a plan and another to stick to it. It is a very crucial factor that determines if you are going to succeed or reach your goals. If your plan is based off a few minutes of excitement or sentiments then you are wasting your time. It is important that you create realistic goals and stick to them so you can reach them faster. The fact that it is unrealistic can sometimes discourage you or even keep you from making a move. When you create realistic goals it is easier to stick and work towards them. Although some might argue that dreaming big is good for the mind but you have to be careful not to fit an airplane into your pocket as your mind might not be mentally prepared for that capacity. Start small and with time your mind and actions will tune and grow bigger.

Next learn to diversify your portfolio. Diversification and is when you spread your assests across different investments. For example rather than investing in only cryptocurrencies, you can also put money into stocks, bonds and alternative assets. And instead of investing in a particular cryptocurrency over and over you can try DeFi, NFTs and even NFT games. This is to provide a safety net for your financial goals no matter what boat is rocked just like Bitcoin and cryptocurrencies are experiencing at the moment. If you invested in only Bitcoin you would probably be depressed as the market has been on a bearish run since November last year. Having other investments to fall back on keeps you in the green and closer to your financial goals.

And lastly,you still need to save. While it is important that you invest it is also important that you save. According to Ryan Klippel you should save atleast 20% of your take home or even higher if you intend to retire earlier. The amount you save depends on how much you earn, how close you are to retirement and your desired annual income after retirement.