Focus on what you can control !

When considering your own financial position there are investment issues that you can control and investment issues that you can’t control. We are inundated with financial news, predictions, comments and analysis. For most people this can be overwhelming and unsettling with people using a lot of emotional energy worrying about issues beyond our control and to be frank, this is a waste of time.

As an investor we try to focus on the matters that we can control, such as:

  • Having a long term financial plan
  • Educating yourself on financial matters
  • Establishing principles of when you do and when you don’t invest
  • How you manage your cash flow
  • The underlying asset allocation you have
  • How you spend your time
  • Benchmarking your investment performance
  • Adjusting your strategic direction to ensure that you take advantage of the free financial free kicks available (eg. salary sacrificing)
  • Ignore what you hear on television and focus your energies on reading the Financial Review and respected industry analysis of financial markets.
  • Who you listen to and what actions you take on the basis of that advice.

Whilst I watch, read and I am interested in matters outside my control, I am also aware that there is nothing I can do to change these; I need to invest in the environment which is provided for me. The investment issues beyond our control include:

  • What the Reserve Bank does about interest rates
  • How Australia performs globally
  • Movements in the Australian dollar
  • Market rallies
  • Sell offs and corporate actions
  • Unemployment rates
  • Corporate earnings
  • How other investors react
  • Government policy and its impact on my investments
  • The media news and noise
  • Australia’s gross domestic product
  • The regulatory environment.

Many investors waste considerable time and energy on matters they can’t control My advice is don’t let these issues worry you, play the hand you are dealt as you can’t change the rules.

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Focus on what you can control!
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When considering your own financial position there are investment issues that you can control and investment issues that you can't control.
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Main Street Financial Solutions
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