Your financial success depends on a lot of factors. Some of them you have no control over. But the good news is many you do.
Be a control freak on the things you CAN control. And forget the rest!
Michelle Morris, CFP®, EA
BRIO Financial Planning
Recently I got a gem of a book from Dimensional Fund Advisors, (DFA) a mutual fund company I use, titled “35 Quotations On a Better Way to Invest”.
In the coming months I will feature a few of my favorites.
Today we review #27, pictured here:
Dave Butler, a DFA executive, goes on to say “no one controls how capital markets behave”. I would add that no one can consistently predict how they will behave either!
You also don’t control economies, elections, or the weather. Presidents come and go as do hurricanes! (Any suggestion that past, current, or future presidents are hurricanes is purely coincidental)
But the list of things you can control regarding your investments is lengthy:
- Having an investment philosophy you can understand and stick with
- Staying diversified among multiple asset classes
- Minimizing investment fees and costs
- Your savings rate
- Asset allocation
You control many aspects of your financial success outside of the investment arena as well:
- Your spending/debt levels
- Minimizing taxes
- Protecting your loved ones and assets with appropriate insurance coverage
- Social security timing decisions
- Buying the right size house and using a mortgage appropriately
So be a control freak on the things you can control! And try to forget the rest.