Why Your New Years Resolution Sucks: Invest Instead

The best thing someone can do is make investing a habit. Once you create a habit, everything comes so much more naturally. You don’t even think about it, it just happens. How can we make investing a habit?

Recurring Purchases

I’m a big fan of recurring purchases. I do this in Robinhood with $AMZN stock, where every two weeks, I buy $200 of $AMZN stock. You can set this at different timeframes and different dollar amounts. For instance, you could weekly buy $10 of $SPOT. Before you know it, you will be closing in on two shares after a year. Not only is this a good habit to get your investments started, it is also a form of dollar cost averaging (a great way to reduce risk).

Start Small, Start Now

The amount of the funds you contribute is less important than you contributing. Just get started, then add more when you can. If that means only $10 per week, do it. If that means $20 per month, do it. Just get started now. Do not wait until you can buy a share, buy fractional shares now. DO NOT WAIT. Start now.

Remove Debt

Investing is easier when you don’t have debt. Instead of paying someone else, pay yourself. Debt removes optionality. Remove your debt, increase your optionality and start investing. Starting small now trumps removing debt. Either way, start investing now.

Positive Rewards

Now that you have a system set up, treat yourself! Set some milestones and reward yourself. Every time you invest, move a marble from one jar to another. When the second jar is full, then you treat yourself! To whatever (reasonable) experience you like.

Investing as a Habit

It isn’t complicated. Start now, start small. Remove debt. Start recurring purchases. Set up a positive reward system. None of this is complicated. No reason not to get started now!