To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29 One the most cited verses on investing is Proverbs 21:5,Steady plodding brings prosperity; hasty speculation brings poverty.But heres the thing about steady plodding it requiresdiscipline.So how do wegetdiscipline? How do we prevent emotions from dictating our decisions? Today, host Rob West explores that with investing expert Mark Biller. Then we take your financial calls and questions at 800-525-7000. When it comes to investing, learning what youre supposed to do is relatively easy. But doing what youre supposed to do, well, thats surprisingly hard. We can be our own worst enemies, especially when the market becomes unusually volatile. Our emotions interact with news and market events in ways that often sabotage us. We allwantto buy low and sell high, but emotionally, its difficult to do either. Experience shows that most investors do the exact opposite. Few investors are willing to sell high, even after a huge market run higher with caution signs of high valuations all around. When the markets have been good lately, greed tends to kick in and investors want to make even more. Its not easy to buy low. Usually when prices drop its because the economy is weak, the news is bad, and people are pessimistic or uncertain. Mark Biller has identified seven qualities that we need to develop to overcome our emotions. Be humble.Accept that theres nothing new under the sun as Ecclesiastes 1:9 tells us. The instructions God has given us in His Word have proven time and again to be practical and effective. Beconscientious.That means seeing yourself as a caretaker of what Gods given you. It means acknowledging that taking undue risks jeopardizesHiswealth. Be prepared.That means developing a written plan that lays out your investment strategy, one that reflects your personal goals and an appropriate level of risk. Be content.A preoccupation with large profits can be dangerous, as the Apostle Paul warns in 1 Timothy 6 when he says:Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs. Be diversified.Ecclesiastes 11 tells us,Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land. Be patient.Take your cue from the Parable of the Talents where the master was away for a long time and make your strategy a long-term one that seeks to build wealth slowly over time. That mindset allows you to take the up-and-down market cycles in stride. Time is the enemy of the speculator, but the friend of the investor. Be accountable.We suggest showing your plan to your spouse or maybe a trusted Christian friend, and review it with them regularly to show youre being faithful to follow it. Mark Biller of Sound Mind Investing has been our guest today. You can read their article, The 7 Qualities of a Disciplined Investor at SoundMindInvesting.org. Here are some questions we answered from our callers on todays program: What is title protection insurance? How is the RMD calculated? Is there a certain age that you shouldnt buy a house? Ask your questions at (800) 525-7000 or email them atquestions@moneywise.org. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
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