The Art of Patience in Investing: Why Slow and Steady Wins the Race
September 3, 2023 | Written by Alisha Chowdhury | Est. Reading Time = 3 mins
Are you eager to see your investments double, triple, or even quadruple, like, right now? If you’re nodding, then let’s get real about one of the hardest but most important aspects of investing: Patience.
The Real Game of Investing ⏳
Many newcomers to investing expect quick, flashy returns. Spoiler alert: Investing isn’t a get-rich-quick scheme. It’s a long game, just like investing in your education and career. Ever heard of the “Rule of 72?”; It’s a simple formula to estimate how many years it will take for your investment to double, given a fixed annual rate of return. For example, if you’re earning 6% annually, your money would roughly double in 12 years (72 divided by 6).
Why Patience is Golden
Education
Think about the four (or more) years you spend in college. You’re not reaping immediate financial benefits; in fact, you’re likely accumulating debt. But the long-term reward? Higher earning potential over a lifetime. That’s a return on investment (ROI) you won’t see overnight.
Career
When you land your first job, you probably won’t start at the top. As you gather experience, network, and upskill, your career ROI gradually multiplies. Think of it like a slow-burning, high-yield investment.
Money
Let’s say you invest $1,000 in a fund that has an average annual return of 7%. In one year, you’ll only gain $70 not that exciting. But what about in 30 years? Thanks to compound interest, your $1,000 could grow to over $7,600!
Mindfulness and Investing
Being patient doesn’t mean forgetting about your investments. It means being mindful. Monitor them, but don’t impulsively react to every market fluctuation. Mindfulness techniques, like deep breathing and meditation, can actually help manage your emotions and make more rational investment decisions.
Tools for the Patient Investor
1. Investment Trackers: Apps like Mint or YNAB allow you to keep tabs on your various investments without constantly refreshing your browser.
2. Financial Planners: Professionals can offer you personalized advice and keep your long-term goals in perspective.
3. Mindfulness Apps: Platforms like Headspace or Calm offer mindfulness exercises specifically geared toward patience and stress reduction.
4. The Oracle of Omaha: Keep Warren Buffett’s wisdom at hand. He once said, “The stock market is designed to transfer money from the active to the patient”.
Wrapping it Up
Patience in investing is just like patience in life: tough but rewarding. By practicing mindfulness and using the right tools, you can cultivate the art of being patient, not just in investing but in every aspect of your financial journey. So, sit back and let your investments marinate. Remember, Rome wasn’t built in a day, and neither is wealth. Stay chill and invest on!✌️
Disclaimer: Our blog is for informational purposes only, you should not consider any such information or other material as investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Mongo App or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction. When investing your capital is at risk.
