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For those interested in improving their financial IQ to make smarter money decisions and achieve financial goals more quickly, here are three expert strategies from George Kamel.
1. Practice Mindful Spending
Impulse buying, much of which Kamel notes often happens while browsing on your smartphone in bed, can be a significant barrier to mindful spending.
According to Capital One Shopping, the typical consumer might spend around $3,381 on impulse buys annually, equating to roughly $281.75 monthly. Following the average shopping pattern, this amounts to 9.75 impulse purchases per month at an average cost of $28.90 each.
By following Kamel’s 24-hour rule, you can help curb these impulse expenses. The approach involves waiting a full day after seeing something you want to purchase. If you still desire the item after 24 hours, go ahead and buy it.
This waiting period is virtually invaluable, especially for emotional shoppers. It prevents momentary feelings from driving financial decisions. Here are additional strategies to help you be intentional with your spending and minimize impulse purchases:
- Create a shopping list and stick to it
- Set a budget for every shopping trip
- Avoid clicking on online advertisements
2. Commit to Long-Term Investments
Kamel strongly advises investing with a long-term perspective, even during steep stock market declines. He highlights the pitfalls of short-term market reactions, noting the 40% of investors who exited the market during the 2022 plunge missed out on its subsequent rebound.
Missing just a handful of the highest-performing days can have a dramatic impact. Franklin Templeton’s research shows that $10,000 invested in an S&P 500 index from January 1, 2003, to December 31, 2022, would grow to $62,755. Missing the 10 best days during this period would halve the value to $28,750.
A ‘buy and hold’ strategy, which involves remaining invested regardless of daily market changes, often yields better returns. Many financial experts endorse this passive investment approach, which typically surpasses the gains of frequent traders.
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Financial guru George Kamel offers practical advice for elevating your financial IQ. Whether you’re new to financial management or looking to sharpen your skills, enhancing your financial IQ involves adopting strategic habits to better handle your finances.
For those interested in improving their financial IQ to make smarter money decisions and achieve financial goals more quickly, here are three expert strategies from George Kamel.
1. Practice Mindful Spending
Impulse buying, much of which Kamel notes often happens while browsing on your smartphone in bed, can be a significant barrier to mindful spending.
According to Capital One Shopping, the typical consumer might spend around $3,381 on impulse buys annually, equating to roughly $281.75 monthly. Following the average shopping pattern, this amounts to 9.75 impulse purchases per month at an average cost of $28.90 each.
By following Kamel’s 24-hour rule, you can help curb these impulse expenses. The approach involves waiting a full day after seeing something you want to purchase. If you still desire the item after 24 hours, go ahead and buy it.
This waiting period is virtually invaluable, especially for emotional shoppers. It prevents momentary feelings from driving financial decisions. Here are additional strategies to help you be intentional with your spending and minimize impulse purchases:
- Create a shopping list and stick to it
- Set a budget for every shopping trip
- Avoid clicking on online advertisements
2. Commit to Long-Term Investments
Kamel strongly advises investing with a long-term perspective, even during steep stock market declines. He highlights the pitfalls of short-term market reactions, noting the 40% of investors who exited the market during the 2022 plunge missed out on its subsequent rebound.
Missing just a handful of the highest-performing days can have a dramatic impact. Franklin Templeton’s research shows that $10,000 invested in an S&P 500 index from January 1, 2003, to December 31, 2022, would grow to $62,755. Missing the 10 best days during this period would halve the value to $28,750.
A ‘buy and hold’ strategy, which involves remaining invested regardless of daily market changes, often yields better returns. Many financial experts endorse this passive investment approach, which typically surpasses the gains of frequent traders.
Thanks!
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