The best advice a financial expert has received is to invest only what one can afford to lose. This advice is not only financial but personal, as it comes from those who have lived through crashes, recessions, and financial losses, and bounced back. Despite being a common trope, this advice can be difficult to follow in practice.
The Best Advice I’ve Received from Financial Experts – More Personal Than Financial
Over the years, I’ve interviewed many financial experts and gleaned countless pieces of advice and tips to help others better manage their finances. However, the best advice I have taken away from these experts wasn’t necessarily financial, but rather more personal.
Twice my age and with twice my life experience, those who have survived crashes and recessions have always disciplined themselves to invest only what they are able to lose. This may seem like a typical piece of advice that we’ve all heard before, but it’s easier said than done when you’re actually doing it.
It’s one thing to be told to invest only what you can afford to lose, but it’s another to resist the temptation to invest more. Many people get caught up in the excitement of the stock market or other investment opportunities and end up overextending themselves financially.
However, those who have survived financial downturns and losses know the importance of being disciplined with their investments. They understand that investing is a long-term game and that it’s better to take a conservative approach rather than risking everything on a single investment.
Furthermore, these experts have emphasized the importance of recovering after a financial loss. As difficult as it may seem, it’s crucial to stay positive, learn from the experience, and get back on track. This resilience is key to long-term financial success.
In conclusion, the best advice I’ve received from financial experts isn’t necessarily new or revolutionary, but it’s important to be reminded of the basics. Investing only what you can afford to lose and maintaining discipline in the face of excitement or fear is key to long-term financial stability. Additionally, learning from losses and practicing resilience can help you recover and come back stronger than ever.