2022 was a bad year for investors. See the red lines in the graph below? …that’s 2022!
Back in October (around what turned out to be the bottom of the market) I wrote:
2022 is, by far, the worst year for stock/bond portfolios since 1950. We know that stocks can, and will, drop 20%+ in a year. But the fact that bonds are also down 15%+…that’s different.
Now, the real question: what should you do about it?
Should you stop investing? Stocks and bonds are both down…so jump ship altogether?!
No. Definitely not. Remember, “the true cost of long-term investing is psychological.” It hurts to see your portfolio value drop. I know. But success comes from enduring that pain and, if you can, leaning into it. Keep investing.
Should you sell your bonds?
No. It’s too late for that anyway. The leading indicator for future bond returns is the current interest rate. Having bond rates at ~4% right now is a strong signal that you’ll achieve ~4% returns on near-future bonds.
So…should I just sit here and take it?! That’s not advice!
Remember what John Bogle famously said:
My rule — and it’s good only about 99% of the time, so I have to be careful here — when these crises come along, the best rule you can possible follow is not ‘Don’t stand there, do something,’ but ‘Don’t do something, stand there!’John Bogle
Don’t do something? Stand there?!
It feels almost inhuman, right? We’re biologically wired for action. We want to do something!
You can consider something like tax-loss harvesting or rebalancing. But you should not consider abandoning your long-term investing plan.
That’s the difference between an emotional investor who reacts to their gut and a rational investor who follows logical rules. Your gut wants to end the pain…to do something. But logic suggests you do otherwise. Will you succumb to your gut? Or listen to the combined logic of many investors far wiser than me or you?
I’m listening to the wise guys.
2022 is a uniquely bad year. It’s understandable to feel glum about it. But you don’t need a uniquely special reaction. Stay the course. Just keep buying. Let the markets and your portfolio recover in the long run.
From the article: Nowhere to Hide: Why 2022 is a Uniquely Bad Investing Year
Back to 2023. Yes, I’m here today to say:
Just kidding! The truth is it’s a little too early to say I told you so. One bad year of investment performance (2022) shouldn’t ruin our moods, and a half year of great performance (2023) shouldn’t make us over-exuberant. We might not be out of the woods completely. I just don’t know. And neither does anyone else.
But if you allowed 2022 to sour your puss and you chose to abandon your investment plan…yikes! Your results aren’t looking too good.
The chart below shows the S&P 500 (dark) and a 60/40 portfolio (light) from October 12, 2022 (the market bottom) to today (7/20/23).
The S&P is up 29% in 9 months. The conservatively diversified 60/40 is up 19% in that period. If you abandoned your portfolio at the end of 2022 and missed those gains…again, I say yikes.
This is Example 1A of why you should stay the course. The headlines at the end of ’22 and the beginning of ’23 were awful. The stock market was taking a dump, the economy was surely headed for recession, and Barbara Walters died.
July 2022, Bloomberg: “Wall Street Says a Recession is Coming. Consumers Say It’s Already Here.”
September 2022, The World Bank: “Risk of Global Recession in 2023 Rises Amid Simultaneous Rate Hikes”
November 2022, CNBC: “Bezos urges consumers and business owners to reduce risk in the face of a likely recession.”
December 2022, NPR: “Barbara Walters, trailblazing journalist, has died at age 93.”
January 2023, Wall Street Journal: “Big Banks Prepare for a Recession”
Who would voluntarily invest in those headwinds?
I know who! Someone who understood market history, had a long-term mindset, and detached emotion from their financial decisions. Not easy, but very possible.
A bunch of The Best Interest readers did phenomenally well these past 9 months. Not because they’re stock-picking wizards, but instead because they buy a diversified set of income-producing assets month after month, then hold those assets for the long term.
Further reading: How I Invest
Investing won’t always feel good. But the times that feel bad are often the best, most important times to stay the course. We’ll never know in the moment, and won’t find out until sufficient time passes. But with the benefit of hindsight, we usually realize, “How about that…the time that felt terrible was the market bottom, and we’ve only gone up from there.”
That’s the lesson so far in 2023.
That lesson might pivot tomorrow. I just don’t know.
But that’s the point. The exact point. I just don’t know. Neither do you, nor the experts writing the headlines.
And that’s why I’ll continue to stay the course.
Thank you for reading! If you enjoyed this article, join 6500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
If you prefer to listen, check out The Best Interest Podcast.
When I learned that my late grandfather had left me his prized watch in his will, I was swept away by a confusing mix of emotions.
I felt touched, of course, that he thought of me and wanted me to inherit something he treasured so highly. Naturally, I also felt a pang of melancholy realizing that the watch came loaded with memories of his vibrant life, but also his passing.
The more surprising emotion, however, was stress. Did I really deserve this watch? What would I do with something so valuable? Would he expect me to wear it? What if I lost it? Am I allowed to sell it?
According to CNBC, around 40% of America’s young generation will inherit wealth. Much of the time, that wealth will come in the form of physical valuables like watches, jewelry, clothing, art, and collections.
If you’ve inherited something valuable or think you might in the future, you might already be facing the confusing mix of emotions that I went through. That’s why I felt inspired to write this piece. Despite the fact that millions of young people will inherit valuables, there’s not a lot of material out there to help us not only appraise and sell the items but get comfortable with the idea of selling in the first place.
What’s Ahead:
Process those complex emotions and decide if selling is right for you
When I received my grandfather’s watch, I found myself in a similar headspace as Frodo when he inherited The One Ring. Staring down at our newfound jewelry, the hairy-footed hobbit and I both realized three things:
It’s valuable.
I don’t exactly know why it was given to me.
I probably shouldn’t tell anyone that I have it.
Naturally, Frodo and I both reached the same, misguided conclusion – that we should hide it and never speak of it again. This, of course, was the wrong choice; basically, a form of procrastination until we figured out what to do with it.
Whereas Frodo eventually threw his inheritance into a volcano, that isn’t really an option for you and me. We know that whoever left us the item wouldn’t have wanted us to just bury it in our linen closet, so that leaves us with two choices: use it or sell it.
Most people assume that if their late relative left them something valuable, it’s because they wanted them to use it and enjoy it as they did in life. Therefore, if you immediately turn around and sell it, it’s like returning their thoughtful Christmas gift to the store. It’s awkward and uncomfortable, and the fact that it’s your inheritance makes it feel even worse.
However, while it’s possible that your late relative wanted you to enjoy whatever they left you, it’s important to distinguish the difference between inheritances and gifts.
Inheritances are not gifts
A gift is something that someone gives you with the full intent that you’ll use it and benefit from it. Therefore, if you return a gift to the store, it signals to the gift-giver that they missed the mark. That’s why we do it in secret.
An inheritance, however, is a form of wealth transfer. Your late relative may have intended for you to use and enjoy the item, or they may have fully intended for you to just sell it and benefit financially.
The difference between an inheritance and a gift, therefore, is the intent of the giver. A gift is always meant to be kept, while an inheritance is meant to be kept or sold.
If an inheritance is meant to be sold, why not just sell it and leave the money in the will? Well, most people don’t sell their valuables in their twilight years; they enjoy them in life and let the next generation decide what to do with them.
How do I know whether my late relative intended for me to keep or sell my inheritance? It’s impossible to say. There’s no statistic that says “XX% of baby boomers intend for their grandchildren to sell their inherited valuables,” and even if there was, everyone’s situation is different.
There are signs, however – if your late relative left you an extensive art collection for your 500 sq. ft. apartment, they probably intended for you to just sell it. If they left you their wedding ring and they know you’re about to get engaged, it’s a safe bet that they want you to use it.
But even if you conclude your late relative probably wanted you to keep your inherited valuables, it’s still OK to sell them.
Here’s why you shouldn’t feel guilty selling your inherited valuables
Inheritances can come in countless forms, from real estate to trust funds to diamond earrings. They can be intended for the recipient to keep or to sell, or anything in-between.
But regardless of their form or surface-level intent, the underlying intent of all inheritances is exactly the same: whoever left it to you wants you to prosper and be happy.
Your goal, then, is to handle your inheritance in a way that honors your late relative’s underlying wish: to make you happy. Keeping it and enjoying it might honor that wish, but so could selling the item and investing the money so you can achieve financial independence faster.
For instance, you could consider a robo-advisor with a lower buy-in like Betterment. Betterment stands out with an easy-to-use platform, a generous selection of Socially Responsible Investing (SRI) opportunities, and the ability to access a human advisor once your balance exceeds $100,000.
Putting your money into an investment opportunity can do a lot more for you than keeping the gift in a box at the bottom of your dresser for years.
Protect the item from theft, damage, and depreciation
Before you get your inherited valuable appraised and sold, you need to educate yourself on how to store it, protect it, and overall preserve its value.
For example, I inherited a rare Japanese teapot from a grandparent a few years ago valued at around $100. Because I love tea so much, I decided to classify this inheritance as a “keep.” However, because I never taught myself how to properly maintain such a fancy teapot, I let water sit in it for too long and rust it. Totaled and worthless, the teapot now sits in my kitchen as an ignominious reminder to not be a lazy knucklehead with my valuables.
The first step to inheriting something valuable, then, is to teach yourself how to use it, maintain it, and store it. Teapots may need special cleaning; art may need to be stored in a cool, dark location; leather goods need routine conditioning; watches may need winding, etc.
In tandem with proper care and maintenance, you’ll want to keep your valuables someplace safe. Even if your renters insurance has adequate theft protection to cover the value of your goods, you still run the risk of the claim being rejected or getting paid less than the item’s market value.
For small items like watches, jewelry, or card/coin collections, consider renting a safety deposit box at a local bank. $60 per year is a small price to pay for peace of mind!
For medium-sized items like artwork or furniture, your first inclination might be to borrow space in a friend or family member’s basement or attic. After all, a giant painting is probably too big to steal!
Storing valuable art/furniture in a basement or attic is a common mistake, however, because these areas are subject to moisture and variable temperatures, which can damage and devalue your stuff. Consider renting a climate-controlled storage unit instead, and look for one outside the city limits where it’s cheaper.
Lastly, if you inherit something really big like a car, you’ll want to protect it from the elements by parking it in a covered space or at least investing ~$250 in a fitted car cover. Since you’ll inevitably have to drive it, you’ll want to get some cheap collision and comprehensive coverage, too, which will also protect it against damage and theft. That may all sound expensive, but keep in mind that you’ll get it back when you sell it.
Big or small, once you have your inherited valuables safely stored and protected, it’s time to see what they’re worth.
Appraise the item
Before getting a professional appraisal, you can get a rough idea of how much your inherited valuable is worth by heading to eBay.
Don’t pay too much attention to asking prices in active listings. Sellers can ask for whatever they want; doesn’t mean it’ll sell.
For a better idea of your item’s true market value, filter by SOLD listings only. You can do this by searching for your item, then clicking “Advanced”
Then check the box for “Sold listings”
In this example, you can see that in general, vintage Gucci bags are selling for anywhere from $300 to $500.
eBay is an excellent self-appraisal tool, but you can also get a more accurate appraisal from a site dedicated to reselling your specific goods.
For example, I got my grandfather’s watch appraised at Precision Watches & Jewelry and Crown & Caliber – both were entirely online, requiring only a description and serial number.
For cars, I recommend using Edmunds’ True Market Value (TMV) Tool. It’s entirely free and can give you a realistic valuation of your inherited car in seconds. If you’re thinking of keeping the car your late relative left you, you can research its True Cost to Own (TCO) to know how much it’ll cost you in depreciation, gas, maintenance, repairs, insurance, etc. If you decide to sell the car, well, you can do that on Edmunds, too!
For art, furniture, and other assets that might prove difficult to appraise online, you can connect with a live appraiser. The American Society of Appraisers has an online directory where you can search for and connect with an appraiser of your goods in your area. Most appraisals cost ~$150 or less, and it’s worth it so you don’t end up underselling your stuff!
Sell the item
Your penultimate step, of course, is to make the sale.
Whoever appraised your item will also have tips for how and where to sell it. They’ll likely make an offer themselves; if so, just be sure to get multiple appraisals online to ensure you’re getting a good deal.
At the risk of sounding lecture-y, just be sure you follow the essentials of selling a high-value item; ship the item well-packed and well-insured, and if you meet anyone in-person, bring a friend and meet somewhere safe. Lastly, be sure the buyer brings cash or cash equivalents, such as Venmo or PayPal, so you receive your full asking price onsite.
I got some cold feet before selling my grandpa’s watch and you might, too. It helped to remind myself that my grandpa didn’t necessarily want me to wear his fancy watch; just to do something with it that made me happy. My grandpa was smart with money and achieved financial independence early in life, and would surely want the same for me. Therefore, I knew that if he saw me sell his watch and invest the money wisely, he’d be proud.
If you use the money from your inherited valuable to inch closer to freedom, happiness, and financial independence, your late relative will likely be proud of you, too.
So make sure you park your money somewhere safe. A Chime® Savings Account is a good example, with no monthly fees2 and a slick UI.
2 There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
Summary
Inheriting a high-value item like a watch, jewelry, car, or even a rare piece of art can elicit a mixed bag of emotions. You may feel glad that your late relative thought of you, sad that they’re gone, and guilty that you aren’t sure what to do with the precious asset that they left you.
Selling an inherited valuable may initially feel uncomfortable, but it’s important to remember that whoever left it to us probably just wants us to be happy. Selling the item and investing the money to accelerate our financial independence is a great way to honor that wish.
Organizing is difficult and can be a stressful, time-consuming project. It’s also an essential skill that can increase your physical and emotional health. Chances are, though, that during an organizing project, you made a few mistakes. Mistakes can be anything, such as misjudging the amount of storage space you need, overlooking important details, or implementing systems that don’t work optimally for your home’s needs. While it’s natural to feel disappointed or frustrated when mistakes occur, it’s important to recognize them as valuable learning opportunities rather than failures.
So, whether you live in a house in Brentwood, CA, or a Greenville, SC, apartment, these expert-backed tips are sure to make your life easier. Read on for 27 organizing mistakes to avoid during your next decluttering project.
1. Overcomplicating
A common home organizing mistake is overcomplicating a project. “This could be a filing system with hundreds of folders for every individual bill, a mudroom with dozens of tiny shoe cubbies, or a drawer with too many compartments,” says Kate Bosch, owner of Kate Bosch Professional Organizing. “The simpler you can make your organizing system, the easier it will be to maintain.”
Kathy Boyd, owner of Declutterfly Professional Organizer, also believes in simplifying projects. “To avoid over complication, work in one room at a time and start with a small space such as a junk drawer, dresser, or closet shelf,” she says. “Then, set a timer and work for 15 to 30 minutes, so you don’t get stressed or overwhelmed. When the timer goes off, quit for the day and start again tomorrow.”
Another way to reduce feeling overwhelmed is removing excess furniture from the space you’re organizing. “Additionally, magazine racks and newspaper holders are often clutter collectors,” says Ben Soreff, owner of House to Home Organizing.
2. Getting overwhelmed by the size of the project
People are often reluctant to start a home organizing project because they’re worried it will take a huge amount of time. However, Sharon Lowenheim, Certified Professional Organizer and owner of Organizing Goddess, suggests breaking your project up into small daily pieces. “Every night after dinner, set your kitchen timer for 15 minutes and pick one small spot to clean out or organize,” she suggests. “Stop when the timer goes off, or if you feel energized, do another 15 minutes before stopping for the evening.”
It’s also important to set an end date for your project. “Don’t leave your organizing project open-ended,” advises Jonda Beattie, owner of Time Space Organization. “Once you have an end date, break the project down into small doable steps with a “do” date while allowing some wiggle room.”
3. Tackling multiple projects at once
Many people fall into the trap of zigzag organizing, meaning they skip around between multiple projects simultaneously. Caroline Guntur, owner of The Swedish Organizer, shares a common example. “Let’s say you want to organize your kitchen but find some items that belong in the dining room, so you decide to put those in place,” she says. “In the dining room, you realize you need more storage space, so you decide to move some things to the garage, and all of a sudden, you’re tackling three projects simultaneously.”
Jolin Polasek, owner and founder of Sage Organization & Design, suggests organizing one room at a time and keeping it simple. “Then, as you move throughout your room, gather similar items into categories,” she says. “Collecting the entirety of one category into one place will help you understand what you have and can get rid of.”
For example, instead of trying to organize the whole basement, select a category within the basement, like hardware or sports equipment, and tackle each category at a time. “This approach helps keep you calm and makes it easier to get through a larger scale project successfully,” says Heidi Solomon, owner of Posh Boston.
4. Failing to break a project into small pieces
People like to do everything at once, especially during decluttering projects. “This almost always ends in disaster,” says Tracey Shadley, owner of Organize A-Z. “Instead, break down your large projects into smaller tasks,” she suggests. “Getting organized doesn’t have to be stressful.”
A similar mistake is forgetting to limit the items you organize in a session. Whether it’s clothes, toys, or kitchen utensils, limit the number of items you organize to avoid feeling stressed and frustrated,” notes Liz Halvorsen, owner of Mess to Bliss. “By editing belongings, you can develop a clearer sense of what you value and make decisions more efficiently.”
5. Neglecting categories
Categorizing is key. Unfortunately, many people forget to do it. “To categorize effectively, start by identifying broad categories that make sense for your belongings, such as clothing, kitchenware, or electronics,” advises Monica Costa, Editor for London Mums Magazine. “Next, take the time to sort through each one and create subcategories based on similarities or frequency of use,” she says. “By categorizing your belongings, you’ll create a systematic and efficient organization system that saves you time and reduces clutter.”
Linda Samuels, owner of Oh, So Organized!, also recommends categorizing. “You might know the mantra, ‘Keep like with like,’” she says. “This philosophy will help you. By corralling similar items together, you can make more informed decisions, stop overbuying, know what you own, and quickly access your belongings.”
6. Decluttering at random
A common home decluttering misstep is to randomly choose items to declutter. To help, “start by gathering all the items together that are in one category, such as clothes, office supplies, or books,” suggests Certified Professional Organizer Ellen Delap, owner of Professional-Organizer. “Once you see a category as a whole, it’s easier to know what to let go of and what to keep.”
One way to help this is to put your decluttering plan on paper before starting. “This might include asking your family who uses an item the most and where they use it,” notes Elaine Fernando, founder and CEO of Organized Transitions LLC. “Once you consider your home’s needs, your project will become much easier.”
Now that you have a plan and have begun decluttering, you can start purchasing bins, baskets, and more. Sara Fritsch, owner of Moxie Space, reiterates how important this is. “A lot of people start their organizing project by buying a bunch of organizing products before they have a plan,” she says. “However, containing should be the last step when getting organized. It’s almost impossible to know which containers, bins, or sorters you’ll need until after you’ve decluttered and re-systemized the space.”
7. Forgetting to digitize
Another frequent oversight is neglecting to digitize your photos, film, and other physical items. “By scanning and uploading these to the cloud, you can free up space and clear out tons of cabinets,” says Mitch Goldstone, President & CEO of ScanMyPhotos.com. A photo archival service like ScanMyPhotos.com takes care of all the work and acts as a magical digital time machine, ensuring the preservation of precious memories.”
8. Buying materials before decluttering
People often make the mistake of thinking they can shop their way to organization. “A common mistake I see is homeowners rushing out to a store and loading up on containers before they understand what they are storing and how much room everything will need,” says professional organizer and author Andrew Mellen. “Instead, the best way to shop for materials is to do it after sorting and decluttering your items.”.
Stephanie Deininger, founder of The Organized Flamingo, also believes that people should purchase items after decluttering. “Pretty bins and boxes are meant to house already decluttered items, not to hide items to never look at them again,” she notes. “When you combine functionality with aesthetics, the bin or box becomes a useful organizational tool that also adds visual appeal.”
“Start every project with a decluttering session,” implores Maria Baer, founder of The Baer Minimalist. “Once you’re done, then you can measure and select a product that works for the items staying in the home.”
Regina Lark, Ph.D. and owner of A Clear Path, agrees. “Everyone is attracted to pretty baskets and bins to organize our belongings, but it’s time to put decluttering before organizing,” she implores. “Only purchase supplies after you declutter a room to keep everything tidy and neat.”
Think of it like buying an outfit for a special occasion: if you find something that looks great but isn’t in your size, don’t buy it, insisting you’ll fit into it one day. “Declutter first, categorize what’s left, then measure how much you need to contain and identify where those containers need to fit,” advises Julie Bestry, Certified Professional Organizer and owner of Best Results Organizing.
9. Not taking your space into account
A common organizing mistake is using products that don’t function well or aren’t the right fit for a space. “We love when people try to create systems, but a lot of times, they don’t work in their space,” notes Katie Savage, owner of Blue Pencil Home. “For example, we often see people use expandable silverware drawer organizers,” she says. “The system seems like it should work, but oftentimes you actually lose space using them.”
10. Beautifying your space before an organizer arrives
If you’re working with a professional organizer, don’t clean up your clutter before they arrive. “Much like a doctor needs to see the health problem before they can diagnose your condition, an organizer needs to see the clutter, so they can create systems that will work,” says Jenny Morin, owner of Efficient Spaces and author of Get Organized Quick: 15 Minutes a Day to Organize your Life.
11. The one-and-done method
It’s a common misconception that once you organize a space, it will stay that way indefinitely. “Unfortunately, this just isn’t true,” remarks Keli Jakel, owner of Organized by Keli & Co. “Maintaining your organized space is crucial to keep your home organized,” she says. “Forgetting to stay on top of your clutter can quickly lead to another large project down the road.”
A good way to stay organized is to simplify your systems. Leigh Achenbach, owner of Suddenly Simple Organizing, suggests reducing clutter by only keeping items you need, use, and love. “Then, give those items a permanent home that is simple, contained, and easy to access so that putting things back is a breeze,” she suggests.
Not maintaining an organizing system created for you is as unfavorable as not having the system at all. “Both scenarios don’t work for you,” says Lisa Harris, owner of Organize with Lisa. “It’s essential to return items where they belong after using them.”
12. Not investing in a professional organizer
Many people fear investing in a professional organizer. “However, this can lead to projects stalling or never getting started,” warns The Organizational Alchemist Shera Sever, owner of Elegant Organization. “Professional organizers help you create an organizational plan and develop systems, so you can start clearing out unnecessary clutter.”
13. Organizing while in a bad headspace
Never organize when you’re in a bad frame of mind. “This can be after having a baby, during a divorce, or even right before a big celebration,” notes Julie Coraccio, Chief Possibility Officer of Reawaken Your Brilliance. “It’s also important to choose a good time to declutter,” she says. “If you aren’t a morning person, declutter during another time of day.”
14. Forgetting to address emotions
Before organizing tasks, it’s crucial to acknowledge and address the anxiety that can arise. “Organizing your home can trigger overwhelming feelings, making it challenging to know where to start,” acknowledges Carolyn Amayo, therapist and counselor at Simplify Life. “Recognize that it’s okay to feel anxious and take small steps to ease into the process,” she suggests. “By gradually building an organized system, you can remove anxiety and experience a sense of accomplishment with each step you complete.”
Emily McDermott, owner of Simple by Emmy, also believes addressing emotion is essential. “Most people don’t realize that clutter negatively impacts physical and emotional health, including stress and sleep,” she says. “By removing clutter, you’re on your way to improving your life in more ways than one.”
15. Not setting an intention
One common mistake is forgetting to define your ‘why’ behind wanting an organized life. “Decluttering and organizing take work – not just physically, but emotionally and spiritually as well,” comment Alex & Jen, co-owners of The Living Collective. “By understanding your true motivation, you can stay motivated and grounded when the process gets difficult or overwhelming.”
Kate Englebrecht, owner of Home Love Method, provides an example and a few questions to ask yourself. “In your kitchen, do you need a lot of snack storage for the kids, and do they need to be easy to grab?,” she asks. “Are you a chef and want the spices to be where you can easily see all of them? Removing the things you don’t need will make room for what you want.”
16. Decluttering too infrequently or not at all
One of the biggest organizational mistakes is to only declutter once per year. “This isn’t enough,” implores Robert Dekanski, founder and CEO of The Robert Dekanski Team. “Decluttering is essential to home organization, so you must do it consistently.”
Audra George, owner of Pretty Neat, provides another example. “I’d say one of the most common mistakes I see is that the client wants to skip the decluttering and go straight to organizing,” she says. “This is counterproductive and slows the entire organizing process because people end up creating space for things that they later realize they no longer need or use.”
17. Prioritizing style over functionality
Some people only choose what looks the prettiest without taking into account their habits, personalities, and needs. “This makes an organizational system unsustainable,” warns Jennifer Barnes, founder and owner of JB Organizing. “It’s more important that the organization be practical and maintainable, than look perfect at the start and end up a mess.”
“You also don’t need tons of different containers, bins, and baskets for every room,” advises Adeilah Dahlke, owner of Jigsaw Organizing Solutions. “Instead, only keep what you like and use,” she says. “This will cost you less money and will be easier to update or change later.”
18. Not prioritizing children’s belongings
It’s important to create systems that work for your whole family, including kids. “Keep items together in one place and create a labeled bin or drawer that defines the contents of the space,” says Jenny Dietsch, owner and Chief Executive Organizer of Getting it Done Organizing. “We recommend a bin in each child’s closet for necessary equipment and supplies.”
19. Touching your belongings too much
The biggest decluttering mistake most people don’t know they’re making is touching their things before they decide what to do with them. “Touching things often makes people more emotionally attached to them,” comments Emily Rooney, owner of Happy Organized Life. “For the greatest chance at decluttering success, decide what you want to do with an item before you touch it.”
20. Over-categorizing
People usually think they need to be very specific when organizing. For example, buying a bin for every category of item and labeling it. However, this often leads to an unusable and overcomplicated system that people can’t maintain,” notes Melissa Corriveau, owner of Life with Less Mess. “Instead of a bin for staples, one for paper clips, and another for tape, make a bin for office supplies,” she says. “This is especially important in kids’ playrooms.”
Tracy Bowers, owner of Organize Simply, agrees. “Buying a little of this and a little of that because something looks amazing will not lead to success,” she says. “Don’t let organizing containers become more of a problem than a help.”
21. Forgetting to celebrate success
Most people forget to step back and appreciate their success while organizing. “Taking a moment to celebrate a job well done can help you get better results and may help incentivize healthy habits,” comments Lisa Jean Dickmann, owner of Tidy Upgrade. “This can be super simple,” she says. “For example, after you make your bed or put things away, step back and congratulate yourself on keeping your room organized.”
Deanne Kelleher from kAos Group agrees. “The three most important parts of any organizing project are prioritizing your work, managing expectations, and celebrating your accomplishments.”
22. Not labeling
One often overlooked home organizing mistake is underestimating the power of labeling. “Neglecting to label items or storage containers can lead to confusion and wasted time searching for things,” says Victoria Tran, founder of Sorted Professional Organizing. “By labeling everything clearly, you can save yourself the hassle and frustration of rummaging through boxes or cabinets.”
23. Asking the wrong questions
When creating homes for items you want to keep, most people ask themselves – Where should I put this? “This is the wrong question,” warns Adriane Weinberg, owner of An Organized Approach. “The correct question is, ‘Where would I look to find this?’ Being organized means being able to find what you need when you need it.”
24. Giving up if something doesn’t work
A common issue is when people give up too quickly when a space needs a reset. “For example, you declutter and organize your pantry but find that after a couple of months, your system doesn’t work,” says Carly Adams, owner of Tidy Revival. “This can be demoralizing,” she says. “Understand that the goal isn’t to have a perfect space all the time; it’s to have systems that are simple to reset as needed.
25. Thinking rigidly
It’s easy to assume that you need a certain tool for a specific task. “However, using out-of-the-box thinking can be a real winner for your spaces,” says Rachel Murphy, owner of Simplify My Life. “A great example is using turn-tables in the fridge,” she suggests. “They allow you to use all your space and reach and return everything with ease.”
Natalie T, owner of Get It Together, agrees that thinking outside of the box is important. “If you don’t have a lot of floor space, consider how you can utilize walls or door space for storage needs,” she suggests. “No matter what you do, trust the process and create a system that works for you.”
26. Investing in deep shelving
Many people think deep shelves are great for storage. “They aren’t,” admits Sara Losonci, founder of Shelfie. “More often than not, people end up losing items in the depths of the shelving,” she says. “Instead, use a lazy susan.”
27. Forgetting to donate items
Donating items is often the last step of an organizing project, so it’s easy to forget. However, this often leads to clutter building up in a car or the back of a closet. “By not donating items immediately, it’s easy to forget about them or even be tempted to keep them,” says Angela Mai, owner of Organized Calm. “Donate items as soon as possible to keep your home clean.”
Welcome to Sarasota, Florida, a coastal paradise renowned for its breathtaking beaches, vibrant culture, and abundance of natural wonders. Whether you crave relaxation on sandy shores, immersion in arts and history, or indulgence in culinary delights, Sarasota has it all. To help you make the most of your time in this vibrant city, whether you’re a weathered local or looking at new houses in Sarasota, this Redfin article has a curated list of must-try experiences, along with local insights, that showcase the unique essence of Sarasota. Get ready to create unforgettable memories as you explore the untamed beauty of state parks, savor local delicacies, and uncover the magic of Sarasota.
1. Visit The Lido Key Tiki Bar
“If you are lucky enough to find yourself in Sarasota, head to The Lido Key Tiki Bar at the Ritz-Carlton Beach Club,” recommends Rupert Diggins from Just One For The Road. “This famous beach bar, overlooking the Gulf of Mexico, is a secret haunt for the Sarasota locals. Delicious cocktails are served by the friendliest of bartenders, with excellent food available too. This is the place to go for sunset in Sarasota and is an experience that will live long in your memory.”
2. Get the ultimate beach experience at Siesta Key
Siesta Key Beach is a slice of paradise nestled on the Gulf of Mexico. With its powdery white sands that feel like silk beneath your toes, it’s no wonder this beach consistently ranks among the best in the United States. Picture yourself basking in the warm Florida sun, listening to the gentle waves lapping the shore, and enjoying the breathtaking views. Take a refreshing swim in the crystal-clear waters or simply relax on the beach, savoring the tranquility of this idyllic setting. Whether you’re seeking solitude or a fun-filled day with friends and family, Siesta Key Beach offers the ultimate beach experience that will leave you with lasting memories.
3. Explore Myakka River State Park
“Don’t miss the chance to witness Florida’s vast expanse of unspoiled wetlands, prairies, hammocks, and untethered wildlife that make up Myakka River State Park,” says CASTO, a X.”
“With an abundance of exploration options like hiking, biking, kayaking, boating, or a guided tour, you’ll be able to immerse yourself in ‘old Florida’ as you navigate the trails and river way that meander through the park. You can enjoy the sights and sounds of ospreys soaring through the air, alligators, and turtles sunning along the river, and the sounds of ancient oaks and beautiful palms rustling in the Florida breeze. The Park is open from eight in the morning to sunset, 365 days a year, and for only six dollars per vehicle, the value of the experience is one of the best around.”
4. Visit The Ringling Museum
The Ringling is a cultural treasure that captivates visitors with its grandeur and rich history. Step into a world of art and imagination as you explore the extensive collection of fine art at The John and Mable Ringling Museum of Art. Admire masterpieces by renowned artists and gain insights into different artistic movements. Delve into the captivating world of the circus at the Circus Museum, where you can marvel at vintage costumes, learn about the history of the circus, and even try your hand at circus skills. The beautifully landscaped gardens, with their vibrant blooms and tranquil pathways, provide a serene escape.
5. Relax at Lido Key Nature Park
“If you’re looking to immerse yourself in the raw beauty of Florida, Lido Key Nature Park is an absolute must-visit,” recommends travel blogger, Michelle Hartz from The Wandering Hartz. “A world away from the usual tourist traps, this hidden gem allows you to truly connect with the natural world. Explore the winding mangrove tunnels by kayak and be sure to keep a watchful eye out for the local wildlife, including playful dolphins, gentle manatees, and majestic sea turtles.”
6. Walk through Selby Gardens
Selby Gardens, or Marie Selby Botanical Gardens, is a captivating 15-acre botanical paradise in Sarasota, Florida. With vibrant displays of rare plants and orchids, it offers a serene and immersive experience. Highlights include the Orchid Display House, Banyan Grove, peaceful koi pond, and mangrove walkway overlooking Sarasota Bay. The gardens also host art exhibitions and educational programs. Whether you’re a horticulture enthusiast or seeking a tranquil escape, Selby Gardens is a must-visit destination.
7. Catch a show at the Sarasota Opera House
Catch a show at the Sarasota Opera House. This architectural gem has been enchanting audiences since 1926, transporting them to a bygone era of grand performances and lavish productions. From classic operas to contemporary works, each production showcases the depth of human emotion and the power of music. As you settle into the plush seats of this meticulously restored theater, you’ll feel the anticipation and excitement in the air. Prepare to be spellbound as the curtains rise, revealing a world where passion, drama, and sublime melodies collide.
8. Kayak Lido Key Beach
Lido Key offers a hidden paradise waiting to be explored. Nestled between the Gulf of Mexico and Sarasota Bay, Lido Key Beach offers the perfect setting for exploring the area’s serene waters. Rent a kayak and paddle through the calm bay or venture out into the open ocean. As you glide along the crystal-clear waters, you’ll have the opportunity to spot a variety of marine life, such as dolphins, manatees, and an array of colorful fish. The coastline is dotted with mangrove tunnels and small islands, providing a picturesque backdrop for your kayak excursion…
9. Shop and dine at St. Armands Circle
St. Armands Circle is a vibrant and bustling destination that seamlessly combines gourmet delights, upscale shopping, and a lively atmosphere. Indulge your taste buds as you explore a culinary paradise filled with an array of restaurants, cafes, and eateries, offering diverse cuisines to satisfy every palate. From fresh seafood delicacies to international flavors, the dining options are as varied as they are enticing. After satisfying your culinary cravings, immerse yourself in a shopping spree at the upscale boutiques and specialty stores that line the streets. Discover unique fashion finds, exquisite jewelry, and one-of-a-kind treasures.
10. See marine life at Mote Marine Laboratory & Aquarium
Through interactive exhibits, educational displays, and captivating presentations, Mote Marine Laboratory aims to educate and inspire visitors about the importance of marine conservation. Witness breathtaking dolphin and manatee shows that highlight the intelligence and grace of these magnificent creatures. Explore vibrant aquariums teeming with colorful fish, mesmerizing coral reefs, and captivating underwater ecosystems. Engage in hands-on activities and gain a deeper understanding of marine research and conservation efforts.
No one said life was fair—which becomes even more poignant when it comes to losing a beloved celebrity. Many of our favorites are remembered not only for their entertainment abilities, but for their big personalities and their heart. From the controversial rapper who changed an entire genre to the movie star with millions of adoring fans, these 15 celebrity deaths shook the world and caused us all to collectively weep in grief. Here is a look back at some of the most impactful recent losses in entertainment that still linger today.
1. Robin Williams
One user posted, “Robin Williams. I loved that man.”
A second user replied, “I’m still pretty torn up about him and Steve Irwin.”
Another commenter added, “Happy to find both of these at the top. Certainly, my choices RIP.”
One Redditor also commented, “I think they were gonna do a movie together, and all the gods were like, nope, the mortals can’t have such entertainment. Seriously, though, a movie with Mr. Williams, Mr. Irwin, and Mr. Farley. Beautiful people, those guys.”
2. Alan Rickman
One Redditor also posted, “Alan Rickman.”
Another commenter replied, “My first movie introduction to him was the Sheriff of Nottingham in Robin Hood, Prince of Thieves, and I still threaten to take someone’s heart out with a spoon. [God] rest his soul…”
One commenter quoted, “’But why a spoon, cousin?’”
Another Redditor replied, “’Because it’s dull. It’ll hurt more, you TW*T.’”
3. Grant Imahara
“Grant Imahara,” one user commented.
Another user responded, “His death was so random and unexpected that I genuinely didn’t believe he died. For a couple days after it happened, I was silently convinced it was an internet prank. Watching the videos of Adam Savage touring his workshop was really hard too.”
One Redditor replied, “Aneurysm is a silent killer, even perfectly healthy people can get it suddenly, sometimes during the night. It’s terrifying. You just go to sleep and never wake up again, because of the faulty vein in your brain.”
4. Steve Irwin
One user commented, “I’m Australian and was in class when I found out that Steve Irwin passed over. It was physically upsetting. I was really distressed all day. I don’t remember feeling that shock since Princess Diana.”
A second user replied, “Steve Irwin is the first celebrity death that I remember happening. Sometimes I wonder what he’d be up to if he was still alive today.”
Another added, “I imagine that, if he had survived the stingray attack, he’d be back swimming with a school of stingrays in the next show. To show that there is nothing to fear and that the stingray that hit him didn’t really mean to do it. Then he would explain how they defend themselves, and he’d also kiss a ray at the very end of the show and call it his ‘little mate’ before releasing it.”
A user also shared, “I remember that Animal Planet had his family and friends over to announce it. It completely destroyed me, it was like my favorite uncle had died. I was so upset that my parents couldn’t get me to school for days. The saddest, most frustrating part of it all is that you know, we all know, anyone that had 15 minutes to hear him talk knows… If he had had a chance to say some last words, they would’ve most likely been, ‘It was my fault, please don’t blame, hate, or hurt the animal.’ He taught me to see beauty in all living things, even creatures our primal instinct rejects. My tribute to him is trying to spread his message that all life is precious and should be respected, admired, and protected, not feared or destroyed.”
5. Anthony Bourdain
One user posted, “Anthony Bourdain. I miss his snarky attitude.”
Another commenter replied, “I think it hit me because, as a pessimistic and generally melancholy sorta person.. I saw within him a kindred spirit with similar tastes and hobbies, etc… Seeing someone who kind of has an idealized version of a life I’d want and that they couldn’t handle and make it out of here so to speak… it kind of dampens the morale a bit when it comes to your own chances of finding peace and happiness.”
“This is a perfect summary if you ask me. His snarky attitude, his love for food and other cultures, and meeting people. And indeed his somewhat melancholic personality… That’s me. That’s about as perfect as a match can be on paper. And I get it. That’s what hit me even harder. Sometimes, I really do get it. And I agree,” added one user.
Another user replied, “It’s hard rewatching all his stuff now. Some of the things that he said really made me sit up and think to myself that we all missed the signs and taught me to listen to people more carefully.”
6. Chester Bennington
One user shared, “Chester Bennington.”
Another user replied, “’When my time comes, forget the wrong that I’ve done, help me leave behind some reasons to be missed.’”
One user commented, “I bawled my eyes out and had to pull over and park my car when “Leave Out All The Rest ” played off my Spotify playlist in 2019. It took on a whole new meaning for 2 reasons:
“I had recently moved to Florida after a really bad divorce, so I lost my entire support base of family and friends from my home state with that move. I’m South Asian, and the stigma of divorce and all of that stupid stuff that our community has, weighed heavily on me because of what my parents were experiencing from people in their lives. The shame was getting to me, I was just driving around waiting for my flight back to my home state. I booked my flight the night before Christmas, because I felt too ashamed to show my face to my family. Somehow I gathered the strength to purchase those tickets and come back to Michigan for a while. This song reminded me of how small this feeling was, that I had nothing to be ashamed of anymore, and that I also needed to leave those parts alone, so to speak.
“It was like a friend of mine gave me a ton of wisdom, love, and support. Then reality sank in, he was gone for good. I took out what I thought were all of the Linkin Park songs from my playlists a few days after he passed because I couldn’t help but feel extremely sad when I would hear them (all the songs are back on my playlists now). But back in 2019, his death was still relatively fresh in my mind, and I thought I took out all of the band’s songs. I missed this one, and I swear, it helped me so much.
“Wherever you are, Chester, I hope you have peace and tranquility. My only regret is not being able to help you, but I will continue to be compassionate and helpful towards others in life the way I have been. Thank you for helping me along with so many others, whether you know it or not man.”
One user also added, “That moment in the memorial concert when they play Numb without the vocals, but have a spotlight on an empty microphone wreathed in flowers kills me every time. That the crowd picked up on it right away and sang the whole song too…”
7. Mr. Rogers
One user posted, “It was pouring rain that morning and I’d stopped to grab breakfast before a looming nightmare commute to work. Right as I was about to pull the key out of the ignition, I heard them say on the radio that he’d passed and just sat there in my car, sobbing.
“I met him in 1983 when he came to my elementary school with the Purple Panda and for a 4 year-old, it was like meeting Jesus. I was so overcome I just blurted out, ‘You’re my best friend!’ and he smiled and said, ‘I’m so glad that we’re friends.’ We didn’t deserve Fred Rogers.”
A second user commented, “My parents were mildly abusive. It was only because of Mr Rogers that I knew something was wrong in my household. The amount of love he shared with people on the other side of the TV was awe inspiring. I think if someone tried to do that today they’d come off as insincere or [trying too] hard.”
Another user shared, “I think he’s the celebrity the world needs most right now. Though I think he’d be so disappointed in all of us to see how we treat each other. I still remember where I was when I heard he’d passed away. My high school band was at Disney World. I can’t remember what park we were at that day but there was a bust there of Mr. Rogers that was already covered in flowers when we got there that morning and people of all ages were stopping there to pay their respects even though it was raining. It just showed how truly beloved he was that so many generations felt like they’d lost a friend when he passed.”
8. Heath Ledger
One Redditor posted, “In 8th grade English class we read Taming of the Shrew and then the teacher let us watch 10 Things I Hate About You to show us how his works still impact writing today. So I had JUST discovered Heath and had a massive crush on him when he passed away less than a year later. It was the first celebrity death that really impacted me.”
Another user also shared, “Still makes me so sad. I thought he was an amazing actor. He just seemed to exude joy.”
“More than exuding joy, he was a remarkable actor. There is a scene in A Knight’s Tale in which he and his cohorts are looking towards the camera as someone is telling them some news. Heath Ledger’s face passes from subtle emotion to emotion. You could read his entire thought process as he absorbed the news. The other actors’ faces were just one look of surprise at the news. I so regret we didn’t get to see Heath Ledger continue to develop because he had a rare gift.” one user replied.
9. Chris Cornell
One Redditor also shared, “Chris Cornell. So talented; gone too soon and died so tragically.”
Another user replied, “I saw him and Chester Bennington in 2007 together. Hell of a show. They’re the reason I never hesitate to say yes to a concert now.”
One commenter added, “Yeah, I’ll forever regret never seeing Linkin park in concert. They were my favorite band as a teenager, and I had one opportunity to see them live when I was in high school and skipped it because I was sure I’d have another chance. Nope. Damn.”
10. Chadwick Boseman
One Redditor shared, “Chadwick Boseman R.I.P. Black Panther.”
Another user commented, “He was such a humble, thoughtful, and selfless dude. I remember watching 21 Bridges and Black Panther and wishing I was as bad-ass and self-less as his characters were. Knowing he was battling cancer while working on several of his movies blew me away, he knew how important Black Panther was to people and continued to train and study every day while battling cancer. Not to mention visiting children battling cancer and hoping to make their day a little happier and a little easier. He continues to motivate me every day to be a more selfless and stronger person and remind me not to waste my life worrying about what others think of us and just doing what you know is right. He’s one of the few people I look up to and strive to be [like. Rest] in peace Chadwick.”
One Redditor added, “A friend of mine went to middle school with him. She had just moved to a new town, after her parents split up, and was having a really rough time; she says that he was one of the only people at that time who was genuinely nice to her. Chadwick Boseman was organically, truly good and that’s a rarity, these days.”
11. Sir Terry Pratchett
One user commented, “Sir Terry Pratchett. He and his works both made the world a better, more interesting place.”
A second user replied, “Terry Pratchett is the reason I evolved from a scared and nerdy introvert kid to the sociable ‘nerd whisperer’. He instilled in me the idea that the filters you use shape your reality, because the actual one is absurd, bizzare, weird, sad and funny, on every scale and step. It is up to us, how we perceive and handle it. Thanks and GNU, Sir Terry Pratchett.”
Another commenter added, “Terry Pratchett is and always will be my favourite author. He could make me laugh and cry in the same sentence. Even now years later when I reread his books I find references or subtleties I missed the last time. He died towards the end of my pregnancy with my youngest. It was a horrible, very traumatic pregnancy and very dark time for me. His death made it worse, especially as his books always brought comfort. It has been several years since then and I still cannot bring myself to read the last book as I am still not ready for it to be over.”
12. Anton Yelchin
“Anton Yelchin,” one user shared.
A second Redditor replied, “Dude had cystic fibrosis. And that isn’t even what killed him.”
Another user added, “He was in my extended friends group…grew up as besties with my buddy’s kid. I used to see him at pool parties and stuff, and he had seen one of my bands, so we would chat about that. Super nice guy with a ton of amazing stories…and then one day, it was just like: ‘Oh my god. Did you hear about Anton???’ Totally f*cked.”
Another user added, “I hope y’all check in on his mom. Last time I was regularly in Hollywood she was still going to his grave for hours every day. Very sad.” Another user added, “He’s my go to for this question. Poor guy had the whole world in front of him. He was in great movies (hell even his voice work in Trollhunters was great) , and the way he went is just so random and awful. Not to say other deaths aren’t tragic, but I think his was more so when compared to the natural death of someone 99 years old, or a drug-related death of someone or someone taking their own life.”
13. Carrie Fisher
One user ended, “We never deserved Carrie Fisher.”
Another Redditor commented, “Followed immediately by Debbie Reynolds 🙁 I felt so bad for Billie Lourd.”
One user replied, “I met her at a Comic-Con right before she died. She was still so beautiful, funny and classy. I was heartbroken when I heard she died.”
14. David Bowie
One user posted, “David Bowie.”
Another replied, “That would be my pick. Knowing he made his last album, released it, and then died 3 days later. It was beyond spooky, but also really cool and creative.”
One Redditor added, “The music videos he created for that album were eerily beautiful.”
Another commented, “My nan bought on the day he died she was on the way back home to listen to it turned on the radio and it announced he had died. She still has the album unopened; she just couldn’t bring herself to do it.”
15. Jim Henson
A user shared, “Jim Henson, too early and such a source of joy to so many.” Another user commented, “Yes. Every time I go to Hollywood Studios at Walt Disney World I have to go to the Muppets 3D movie, it was the last thing he did as Kermit. It makes me sad that he died before the paperwork with Disney was complete and because of that a lot of the plans for the muppets at that park never happened. Watch his funeral on PBS, it’s one of the best celebrations of a human’s life you can see.”
Do you agree with the list above? Share your comments below!
Source here.
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In Buddhism, they call a wandering mind “monkey mind.” I have more of a “gorilla mind”, stampeding out of control, acting on every impulse, and laughing off my attempts to tame it.
That’s why I found the CEO Schedule so effective. It’s not a regimen; it doesn’t require you to get up at 4:45 am, pound 40 grams of organic protein, and perform yoga poses during conference calls.
Rather, the CEO “Schedule” is merely a list of habits. Extracted during a 12-year Harvard Business School study of 27 CEOs, the CEO Schedule highlights ways high-level executives can more effectively manage their time.
While I’m neither high-level nor an executive, certain elements of the CEO Schedule have massively helped me manage my time better without disrupting my existing regimen (i.e. upsetting my gorilla).
In this article, I’m going to highlight certain habits within the CEO Schedule that I think would help anyone manage their time better and make work more enjoyable. Even if you can implement just one habit from the CEO Schedule, it can be a huge help.
What’s Ahead:
Bundle together similar tasks
Ever feel like you’re “shifting gears” too much during a workday, between emails, personal stuff, and the primary task at hand?
The problem with “shifting gears” too often is twofold. First, it wears out your clutch, aka your brain. Second, when your brain has to constantly start over and refocus, productivity is lost.
While minute-to-minute focus can be achieved through meditation and mindfulness, a quick fix you can perform on your calendar is to bundle together similar tasks. The study found that highly effective CEOs all made an effort to stack admin/meeting/problem-solving tasks together so that they could preserve mental energy and momentum.
Try this:
Head over to your calendar and try to create as many large blocks of tasks as possible. Instead of peppering meetings throughout the week, try to stack all of your meetings on, say, Wednesday and Thursday, and keep Monday and Tuesday sacred for hunkering down and writing.
Put downtime on your calendar
Time spent away from work is just as, if not more important, than the work itself. For that reason, it deserves a spot on your calendar! (Note, I’m keen on calendars -see my piece on keeping your finances on track with a financial calendar!)
The study found that even the busiest CEOs spend at least three hours socializing with friends and family, two hours on hobbies or TV, and one hour in the gym. The precision timing is no coincidence; the 27 CEOs treat their mental and physical health like clients – they’re never late to a meeting and they give them full attention.
Try this:
A simple checkbox in my Gmail settings provided a nice boost to my mental health.
First, set your default view from five-day to seven-day, so that each time you visit your calendar you can see your weekend activities and not just your work.
Next, bake your personal time into your calendar. Color code your gym time, your quality time with family and friends, and your solo downtime, whether it’s spent gaming, browsing Netflix, or figuring out your next investment.
All of these restful activities are just as important at work, so they deserve space on your calendar.
Pick up the phone more often
Despite most of their jobs revolving around communication, the 27 CEOs spent just 24% of their time on email, and 76% of their time face-to-face or on the phone.
While that might sound inefficient and a little old-fashioned, communicating in-person or at the very least on the phone is actually a huge time saver. Emails are disruptive, prone to misinterpretation, and are no faster than a telegraph for communicating with a single individual.
Plus, CEOs value meetings and Zoom calls because they build trust and relationships. Tone, emotion, and subtlety are lost in plaintext format.
Try this:
If an email upsets, annoys, or confuses you, or if your email might elicit such emotions in the other party, pick up the phone instead. By communicating more directly via voice, you’re less likely to have a miscommunication and end up saving time in the long run.
Shorten your meetings
During the study, one of the most common “confessions” among CEOs is that many of their one-hour meetings could and should have been 30- or even 15-minute meetings. However, they generally refrained from suggesting shorter meetings because they didn’t want to appear too busy or self-important (49% of their meetings were scheduled by the other party).
I’m sure you’ve been in a meeting that went on way too long because someone was arbitrarily trying to fill the hour they asked for, or the conversation was caught in a “swirl” where attendees began repeating themselves and somebody says “what we need to find is a balance.”
When meetings are shorter and end early, you’ll find that the first casualty is that time-wasting fluff and swirl. Tighter time windows push for expediency and let everyone return to their days sooner.
Try this:
Reset your default meeting duration from one-hour to 30-minutes. You’ll end up saving yourself and all in attendance a lot of time. To fit everything in, stick to a strict agenda, take notes, and establish clear owners/due dates for all follow-ups.
If you end even earlier and want to wrap things up politely, simply say “if there’s nothing left to cover, I’ll give you 15 minutes of your day back.”
Always have an agenda
Perhaps unsurprisingly, the word “agenda” appeared 27 times in the HBR report. Most of the time it wasn’t in the context of a meeting, but rather in reference to a greater set of personal goals.
At one point during the study, the researchers asked the CEOs to describe their goals for the quarter and the hours devoted to achieving them. All 27 CEOs provided this data on the spot.
As someone who’s battled feelings of depression, I’ve learned that one of the secret killers of mental health is a feeling that you’re lacking momentum. You have things that you want to accomplish, but you’re not moving towards them. Consciously or subconsciously, that feeling of stagnation really sucks.
Thankfully, by contrast, any feeling of progress, or that you’ve pushed the ball forward just a little bit, can be a huge source of reprieve.
Try this:
Right now, make a list of three goals. They can be a mix of personal or professional, like “lose 10 pounds” or “get my personal finances in order”.
Next, look at the last two weeks of your calendar and ask yourself: how many hours did I devote to those goals? Which might need more attention next week?
By keeping an agenda of any kind, and chipping away at it each day, you can ensure that you’re always moving towards your goals.
Summary
As you can see, there’s a reason CEOs can pack so much into their days. And you too can take some of the most common CEO strategies and apply them to your own life.
No matter if you take all of these and run with them, or you find just one way to improve your productivity, you’ll certainly be happy you did.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
If you have been trading for a while, then there is a good chance that you have made some trading mistakes along the way.
Unfortunately, it is part of learning how to trade.
After all, trading is a skill that takes time to learn.
Trading mistakes are part of the learning process. I know that sucks to hear, but it is the truth.
The outcome goal is to learn from those trading mistakes.
Then, you can realize what you did wrong so you do not repeat those same mistakes.
However, more than not, it is more common to repeat the same mistake over and over again.
If you are ready to recognize trading errors and learn how to overcome them, then keep digging in. Take notes and adjust your trading plan accordingly.
We will cover emotional trading mistakes, technical trading errors, and option trading mistakes.
What Are Trading Mistakes?
Trading mistakes are errors made by traders when you enter trades, either to purchase stocks or options.
More than likely, you will see the same type of trading error happening over and over again.
Trading mistakes are very common, but they do not have to lead to complete panic.
In order to minimize the chances of making a costly mistake, traders should adhere to their trading strategy. Additionally, traders should always trade with a clear head and stay disciplined.
There are plenty of trading mistakes you can avoid by being smart and adjusting your trading plan where needed.
Why Understanding Trading Mistakes Is Important for Long-term Success
Trading mistakes are the result of traders taking losing trades, which can result in poor overall performance.
Mistakes that occur during trading often include not paying attention to the market, not understanding risk, not having a well-thought out trading strategy, and being bad at managing the trade.
Whatever the reason, trading errors occur and it is how we react to them that matters.
Long-term success in trading is not a goal that can be accomplished overnight.
Achieving long-term success with active trading requires patience, discipline, and practice.
It is easy to get caught up in day-to-day successes and forget to commit to a long-term plan. As traders, it is important to be able to recognize our mistakes so that we can learn from them and move forward.
Top 5 Trading Mistakes
As you will see, we compiled a long list of trading mistakes. Each trader will see some of those trading errors in themselves. Some are small trading mistakes while others are detrimental.
First, we are going to focus on the top five trading mistakes first. This will make or break your success as a trader.
The following are five common trading mistakes that traders make and how to avoid them.
#1 – No Trading Plan
Trading without a plan means you enter a trade without knowing your next step.
No trading plan means that traders are not able to set clear goals, establish risk-reward ratios, and avoid common pitfalls that can occur during a trade. This makes it difficult for traders to know when they should be buying, selling, or holding.
Trading without a plan is risky because it can lead to losses that are much higher than they need to be.
When starting out in trading, it is important to remember that we can only focus on what we can control. This means that we should not worry about things we cannot change, such as the past or the behavior of other traders. Instead, we should form a trading plan and stick to it so that we can succeed in the long run.
Creating your trading plan will happen with many revisions. The goal of the trading plan is to set your overall strategy for trading.
Also, you need to have a specific trading strategy for each trade you enter.
Avoid by: Spending time to develop a trading plan. Revise as needed. Stick to it.
#2 – Risk Management Plan is Missing
A risk management plan is essential for traders and it should be included in any trading plan.
Without a risk management plan, traders are more likely to make emotional decisions that can lead to costly mistakes. For many traders, this is the hardest thing for them to manage.
It is possible to create a risk management plan as your overall trading plan.
In your risk management plan, you must decide (in advance) how much money you are willing to lose based on the amount of profit you perceive to make. For instance, you are willing to risk $300 in order to make $1000.
Many day traders focus on a 2:1 reward-to-risk ratio. Personally, I look for stronger reward-to-risk ratios greater than 3:1.
Avoid by: Understand how risk is a part of making a profit. Set your risk tolerance and do not deviate from it.
#3 – Not Keeping a Trading Journal
One of the most important aspects of successful trading is keeping a journal.
This not only helps you keep track of your trades and performance, but it can also help you remember what worked and what did not. Journaling is so helpful and such an overlooked task.
Your trading journal is the perfect place to take notes, keep track of your wins and losses, and record market movements so that you can learn from past mistakes.
At the end of every trading session, you should take some time to analyze your trades.
What went well?
What didn’t go well?
Why did you make that particular trade?
What was your entry strategy?
What was your exit strategy?
Where was the overall market momentum?
Did you control your emotions?
What grade would you give yourself?
This analysis is important so that you can learn from your mistakes and improve your trading skills. Stay motivated to continue learning about trading and keep more profit.
Avoid by: Start journaling. Spend time after exiting a trade and the market day to understand what happen and why you did a certain trade.
#4 – Watching Too Many Stocks
Watching too many stocks can lead to a decrease in returns and overall confusion on what is happening with your watchlist.
As a result, it is important to be selective.
The same can be said of stock scanners. If you are watching too many variables and possibilities, you can quickly become overwhelmed.
When you develop your trading plan, you need to decide how you find stocks.
Personally, I prefer to focus on a handful of stocks and a few key metrics. Then, watch them closely and trade accordingly.
As a new trader, I would pick about 5-10 stocks to analyze.
Avoid by: Revise your watchlist to half what you are currently watching.
#5 – Actually Exiting Trade as Planned
Above we talked about creating a trading plan and having a trading strategy for each trade taken.
But, the trading mistake happens when you do not exit the trade as planned.
This could be because of “hopemium” that the stock price will recover and you will get back your loss.
Our “hopemium” is that the stock price keeps rising and you will make more money.
Either one can be damaging to your trading account.
You created a plan. As a disciplined trader, you must follow your plan either to maximize your current profit or protect your risk against further losses.
Avoid by: Exiting at your set targets. Period.
12 Typical Emotional Trading Errors
Trading is 80% mental and 20% execution. Okay, I am not sure that there is an official study to back it up. But, I do know as a trader that emotions play heavily into your overall profit.
The typical emotional trading errors that traders make when they are in a trade are overconfidence, jumping into trades before the proper analysis is completed, and inability to take losses.
This is where most of the trading mistakes are made.
When first starting out in trading, it is easy to get caught up in the prospect of making a lot of money quickly. However, most traders find that trading is not easy to do and make common emotional trading errors.
Let’s dig into these emotional mistakes first and then we will follow up on the technical trading mistakes.
1. Letting emotions impair decision making
Emotions are an important part of decision-making, but it can be dangerous to allow them to influence our decisions. We should also take into account that emotions can often lead us astray.
It is clear that emotional trading can lead to bad decision making and, ultimately, financial losses.
When investors let their emotions take over, they are not thinking logically and may make impulsive decisions. For example, they may sell stocks when the market is down in order to avoid further losses, even though the stock may rebound soon after.
In order to be successful traders, it is important to stay calm and rational when making decisions.
Overcome by: Stick to your trading plan and take emotion out of the equation.
2. Unrealistic Profit Expectations
You go into every single trade expecting a home run! Enough money to achieve your dreams overnight!
These types of profit expectations will have you throwing your risk management plan out of the window and set you up for failure with greed, overconfidence, and impatience.
Be realistic about your expectations with trading activity.
Overcome by: Go for base hits. Small consistent wins.
3. Greed
Greed is a deep-seated need for more profit without regard to the chart or market conditions.
The common rationale is hopefully the stock will go up. Typically, you hold your position too long and end up losing some of your gains.
Greed can manifest in many different ways, and people with greed often neglect their own needs in order to attain more.
Overcome by: Set an OCO bracket to exit the trade at your specified level. Take you out of the equation.
4. Fear of Missing Out (FOMO)
You fear that you missed out on a trade, so you decide to jump in. As a result, you are risking more than you should.
This trading mistake is common, especially with online trading communities.
As a result, you may buy at the high and watch the stock reverse.
Overcome by: Realize that there will be missed opportunities. That is part of the game. There will always be another chance.
5. Fear
In many cases, fear is a reaction to why or why not we enter a trade.
For any trader, they may become frozen unable able to make a decision as their mind is wrapped in fear. At the same time, they are either missing out on potential profits or unable to exit a trade due to mounting losses.
Overcome by: This is a real emotion that you must overcome. Take the time and read resources to help you overcome being paralyzed by fear.
6. Overconfidence after a profitable trade
The overconfidence that comes with success can lead to a loss of profits.
When a trader has a winning position, they may become overconfident and make bad decisions because of the previously profitable trade.
For example, they may not take their profits off the table when there is an opportunity to do so or increase their position size when they should be taking profits. This could lead to them losing all of their winnings and more.
Overcome by: Take a break from trading for a few days or a week after a big win.
7. Entering a Trade Based on Your Gut
The process of entering a trade based on your gut is, essentially, following your “gut feeling” and buying or selling shares after the market opens. This is seen as a more risky and less profitable strategy than following a more traditional market timing approach.
Trading is all about making calculated decisions and sticking to a plan.
Trading based on your gut feeling or emotions will only lead to costly mistakes.
Overcome by: Before entering into any trade, make sure you have a solid strategy in place and know all the rules. Only then should you start trading.
8. Not reviewing trades
Not reviewing trades is a common problem for many traders. Traders who don’t review their trades tend to be more likely to make mistakes in their trading and over-trade, which can result in losses.
You will make the same mistake over and over again until you realize the root of the problem.
This is how you move from a losing average to a winning percentage.
Overcome by: Let your journal be your friend. Document everything including your emotions.
9. Following the Herd
Many people enjoy following the herd with stock trading, especially online platforms on Reddit, Discord, or Twitter.
You may decide to follow a certain group of people in order to be fed stock picks or updates.
This can be risky because there is no sound foundation to base your trade upon.
Overcome by: Trade your style and let that fit you.
10. The Danger of Over-Confidence
The “beginner’s luck” experienced by some novice traders may lead them to believe that trading is the proverbial road to quick riches.
Over-confidence is the belief that one’s abilities, knowledge, or qualities are better than average.
This over-confidence is a risk factor for certain types of mistakes and other negative outcomes as it leads to complacency, a lack of preparation, and an overestimation of one’s abilities.
Overcome by: Realize your limitations and watch for overconfidence to appear.
11. The Importance of Accepting Losses
Losses are always a part of trading life, but they can be overwhelming when they occur.
It is important to recognize that losses are in fact an inevitable part of growth and development as a trader.
Overcome by: Journal all of your losses. Look for patterns to appear. Adjust your trading strategy as appropriate.
12. Quit Your Job Too Fast
Quitting your job too fast is not a good idea, as it will force you to place trades that may not be the best set-ups.
Day trading can be a very risky venture, and it is possible to lose everything you have invested.
It is important to be aware of the risks before getting started. More importantly, do not quit your job too fast. This can lead to losses in your investments and could potentially put you in a worse financial situation than you were before.
Overcome by: Keep trading as a side hustle. Hone your trading skills and build up a reserve fund that will cover your monthly expenses. You will know when you are prepared to leave your 9-5.
Common Mistakes in Stock Trading
According to a study by the U.S. Securities and Exchange Commission, technical trading mistakes are actually fairly common among individual investors.
Mistakes in technical trading can be two-fold, either due to lack of knowledge or poor execution.
The most common mistakes are buying at the top and selling at the bottom, overtrading, and not taking the time to properly understand how trading works.
Now, let’s dig into all of the common trading mistakes I see.
1. Overtrading
Let’s start by talking about overtrading. This is a mistake that I see many people make. It is also a mistake that could have been easily prevented if you had just done your research before placing the trade.
Overtrading or placing more orders than you should do is the most common mistake.
Many new traders will simply open up their platform, look at the market, and place a trade. They are often chasing after the last couple of candles or they see an opportunity to get in “on the cheap”.
The problem with this approach is that you have no idea if this is a good trade or not. You are simply taking a shot in the dark and hoping for the best.
Overcome by: Only place the A+ setups that you like. Once you have traded so many times per day or week, stop trading.
2. Buying High and Selling Low
We all have heard the saying, “buy high and sell low.” However, too many novice traders do the complete opposite.
This trend happens with one of the emotional mistakes of FOMO; we already dived into that concept earlier.
Overcome by: Follow your trading plan on when to enter and exit the trade. Practice your strategy in a simulated account and master it.
3. Lack of Trading Knowledge
The lack of trading knowledge is a problem for many traders who are not familiar with how the stock market works. This can cause them to make mistakes when buying and selling stocks, which could result in losing a lot of money.
Just because you made a profit once on one stock does not mean that is a repeatable action.
In order to be successful in trading, it is important to have a good understanding of the markets and the strategies involved.
Without proper training, you are likely to make costly mistakes that can cost you money. Trading courses and tutorials are available online and through other resources to help you gain this knowledge and become a successful trader.
Overcome by: Take an investing course. Spend money on your education and not your losses. Here is a review of my favorite day trading course.
4. Following Too Many Strategies
Following too many strategies is a common problem in the investing world, which can lead to poor performance and more costly mistakes.
There are a million and one different approaches on how to trade the stock market, which indicators to use, whose advice you should follow, so on and so forth.
And then, many traders try and couple the strategies together only to quickly learn they may cause more losses than profits.
One way to avoid following too many strategies is by using a set of rules to decide which strategies are appropriate for investing.
Overcome by: Develop your trading plan. Outline the investing strategies you will use. Test any new strategies in SIM first.
5. Do Your Research
The solution to this problem is simple: do your research!
Before you enter a trade, take the time to do some analysis on the asset you are looking at. Look at past price action, news events, and any other relevant information that you can find.
Understand why the market might move in your favor and be able to build a case for it. The more data points you have supporting your position, the better off you will be.
If you are able to build a strong case for why the asset will move in your favor, then you can enter with confidence. This is because if the market does not move in your favor, you will know that it isn’t because of a lack of research on your part.
When you enter with confidence, this will make it easier to hold through the inevitable volatility and price swings.
Overcome by: If you enter without knowing why something is likely to move in your favor, then you are setting yourself up for failure. Do your research.
6. Not Using Stop-Loss Orders
Stop orders come in several varieties and can limit losses due to adverse movement in a stock or the market as a whole.
Tight stop losses generally mean that losses are capped before they become sizeable. However, you may have your stop loss too tight and get stopped out before your stock has room to move.
A corollary to this common trading mistake is when a trader cancels a stop order on a losing trade just before it can be triggered because they believe that the price trend will reverse.
Overcome by: Plan your stop loss in advance. Stick to it as it is part of an overall risk management strategy.
7. Letting Losses Grow
Active traders can be harmed by refusing to take quick action to close a losing trade.
It is important to take small losses quickly and limit your risk in order to stay profitable.
Stop losses can help you avoid larger losses.
While the stock may come back to your buy price, you have increased your risk far beyond what you planned. If your planned loss was $300 and now you are down over $500, it will take that much longer to overcome that growing loss.
Cut your losses. Review the chart. See what a better entry point may be.
Overcome by: If the stock moves past your pre-determined stop, then exit the trade. Don’t trade on hope.
8. Chasing After Performance
Many day traders are tempted to chase stocks, which is a bad reputation in the day trading world.
This happens when they see a stock that has had a large price increase and they think that it will continue to go up. In reality, this is not usually the case, and chasing stocks can lead to big losses.
What goes up must come down, right?
Overcome by: Wait for a better time to enter the trade according to your trading plan.
9. Avoiding Your Homework
It is important to do your homework. If you avoid doing your homework, then don’t expect fast results
Many new traders often do not do their homework before making any investment decisions.
This can lead to costly mistakes that can be avoided by doing some basic research. Trading is a complex process and should not be taken lightly – make sure you are fully prepared before risking your hard-earned money.
Overcome by: If you have not enrolled in an investing course, do that. Set daily goals on how to improve your trading performance that is not based on profit or loss.
10. Trading Difficult and Unclear Patterns
It is important to stick with the patterns and indicators that are clear and unmistakable so you don’t get caught up in any ambiguous or unclear trading signals.
With a little bit of research and understanding, these market patterns can become quite clear.
By forcing a chart to fit in what you want, then you are putting your trading capital at risk.
Overcome by: If you cannot read a clear chart or pattern, then quickly move to the next stock.
11. Poor Reward to Risk ratios
The most common mistake made by traders is poor risk management. This usually means taking on too much risk in relation to the potential rewards, which can lead to heavy losses if the trade goes wrong.
It is important to always have a solid plan for how much you are willing to lose on any given trade and never deviate from it.
What is the Reward to Risk ratio you look for:
1:1 Reward to Risk
2:1 Reward to Risk
3:1 Reward to Risk
Many beginner traders do not want to take on as much risk because their appetite for potential rewards may be lower. It is important for beginners to consider their trading strategies and risk management plans so that they can make the most informed decisions possible.
Risk-to-reward ratios are an important part of trading, and experienced traders are typically more open to risk in order to maximize their potential rewards. This means that they may be more likely to make high-risk, high-reward trades.
Overcome by: Stick to Risk to reward ratios that fit your trading plan.
12. Ignoring volatility
Volatility is the fear and unknown in the market.
The most important thing to remember about investing is that the stock market can be volatile.
A measure of volatility is from the VIX.
Overcome by: Decide how you will trade when the VIX is high and the news is negative.
13. Too Many Open Positions
Entering too many positions is one of the most common mistakes investors make. A portfolio should consist of a handful of top-performing investments that have proven to be good bets over time.
It is unwise to open too many positions in a short amount of time because it could lead to confusion.
This can be risky because if one or two of the positions go south, the entire portfolio can suffer. For this reason, it is important to carefully consider each position before opening it and make sure that all positions are contributing positively to the overall goal.
Overcome by: As an active trader, stick to under 5 open positions. As a long-term investor, look to build a portfolio of 25 stocks over time.
14. Buying With Too Much Margin
Most brokers offer 2:1 or 4:1 margin to cash. While this is tempting to use, it can also give you a margin call.
Margin can help you make more money by increasing your position size, but it can also exaggerate your losses.
Exaggerated gains and losses that accompany small movements in price can spell disaster for a new trader using margin excessively.
Overcome by: Use your cash only. Stay away from using margin.
15. Following Meme Stocks
These are the stocks made popular by many Reddit personal finance groups.
You have probably heard of Gamestop, Blackberry, AMC, or Bed Bath and Beyond as a meme stock.
While these stocks have risen to crazy highs, they have also fallen just as fast. Chasing the high may leave you with a big and painful loss.
Overcome by: Stick to your stock watchlist.
16. Buying Stocks With No Volume
Buying stocks with no volume is a risky idea that involves placing an order on a stock without knowing how much interest there will be in the shares. This can result in losing money if there are no buyers for the shares.
It is important to validate the price of a stock by looking at volume. The volume shows how much interest there is in a stock and can be indicative of future price movement.
When volume is low, it’s best to stay away from buying stocks as it could be a sign that the stock price is not stable.
Overcome by: Trade stocks with a volume of at least 500,000 or higher.
17. Ignoring Indicators
Indicators are things that tell us the market is going up or down. Examples of indicators would be the stock market at a particular point in time, a company’s performance with regards to earnings, the price of a product or service.
Every trader has their own set of indicators they use.
If you have outlined indicators you use in your trading, make sure to follow them regardless if it is against the way you want the stock to move.
Overcome by: Stick to your trading plan for each stock individually.
18. Trading Too Large Position Sizes
Trading too large position sizes is a risk that traders may run into when they hold positions in their portfolios for extended periods of time.
Position size is the amount of money placed on a trade, and the risk is that a trader may lose more than their capital on the trade if it does not go well.
Overcome by: Base your position size on the amount you are willing to lose. Not how much you want to make.
19. Inexperienced Day Trading
In order to be successful in trading, it is important to have a good understanding of the markets and the strategies you are using. Without proper training, it is easy to make costly mistakes.
Too many day traders turn trading into an unnecessary risky game.
To be successful, a day trader must have a solid foundation in how to invest in stocks for beginners.
Overcome by: Practice in a simulated account and make all of your mistakes there before moving to live money.
20. Inconsistent trading size
Inconsistent trading size is when traders are unable to predict what their position size should be in order to meet the trader’s desired profit goal.
Trading size is one of the most crucial aspects of a trading strategy and should be considered carefully. Larger trade sizes come with an increased risk, so it’s important to be aware of your position size when making trades.
Overcome by: Don’t risk too much on one trade. Stick to your risk management plan.
21. Trading on numerous markets
Trading on numerous markets is when a trader invests in stocks, bonds, commodities, crypto, and other securities.
Every type of market moves differently and takes time to understand how to be profitable.
Overcome by: Find your niche and stick to it.
22. Over-leveraging
Leverage is a powerful tool that can be used to magnify gains and losses in a trade. It is important to be aware of the amount of leverage being used in order to effectively manage risk.
Brokers play an important role in protecting their customers by providing margin calls and other risk management tools.
Overcome by: If you feel over-leveraged, sell some positions before your broker gets involved.
23. Overexposing a position
Overexposure is a term used in the investment world to describe the risk that comes with exposing your position too much in the market. When you have overexposed your position, you are putting yourself at risk of losing money if the stock or security you are invested in falls in value.
You are taking on too much risk.
Overcome by: Stick to your risk management plan. Always have cash reverse on hand in case the market reverses.
24. Lack of time horizon
There are different time horizons for various types of trading strategies. It is important to think about the time horizon you are comfortable with before investing in any type of investment.
If you are a day trader, you plan to close your trades before the end of the trading session. As a swing trader, you typically hold trades for a couple of days maybe up to a month. As a long-term investor, you plan to hold your stocks for longer than a year.
Overcome by: Match the time horizon of that investment purchase with your investing goals.
25. Over-reliance on software
Although some trading software can be highly beneficial to traders, it is important not to over-rely on it.
Automated trading systems are becoming so advanced that they could revolutionize the markets. As a result, human traders need to be aware of the potential for these systems to make mistakes and use them in conjunction with their own judgment.
Overcome by: Set alerts before you want to enter or exit a trade. Then, review if the move still follows your trading strategy.
Top Options Trading Mistakes Beginner Traders Make
These options trading mistakes are specific to option trading.
Trading options is an advanced strategy. If you have losses trading stocks, wait before you start trading options.
1. Not having a Trading Plan
Every trader needs a trading plan that outlines strategies, game plans, and trade metrics.
When you are trading without a plan, you are essentially gambling and hoping for the best.
This is not a recipe for success in the world of stock trading and is especially true for options traders.
A good trading plan should include chart analysis so that you can make informed decisions about when to buy and sell stocks. If you are using HOPE instead of a trading plan, then you need to find out the right way to interpret the chart because that will give you a better idea of what is happening in the market and how likely it is that your investment will succeed.
Overcome by: Create a specific trading plan based on your option strategy.
2. Not properly Researching Option Contracts
Learning to trade options is like going to school for a whole different trade.
There are way too many technical aspects to discuss in this mistake.
Spend time learning what criteria you want from an options contract to be successful.
Overcome by: Learn how options work and practice trading options in the simulator before going live.
3. Trading without an understanding of the underlying asset
Before you start trading options, trade with stocks.
Every stock moves at its own beat. You need to learn how it moves.
Jumping into options prior to knowing the stock can cause extreme losses. Learn how the underlying asset moves first. Be successful in trading stocks before moving to options.
Overcome by: Learn to trade the stock with shares first. Then, practice in a simulator. Once familiar, then trade live with options.
4. Buying Out-of-the-Money (OTM) Call Options
Options trading is a risk-based strategy. It’s important to know which strategies are right for you and what the risks of each option type are before putting on an option trade.
One common mistake that many traders make when it comes to option trades is buying out-of-the-money (OTM) call options.
This is because OTM call options are inexpensive and have a range of around 100,000 to 1 million. To avoid this mistake, it’s important to know what the risks of buying OTM call options are and which option strategies are appropriate for you.
Overcome by: Focus on trading In-the-money (ITM) call contracts. Know your strategy.
5. Not Knowing What to Do When Assigned
When you enter into an options contract, you are essentially agreeing to buy or sell the underlying asset at a specific price on or before a certain date.
If the market moves in a way that benefits the buyer of the option (the person who contracts to buy the asset), they can choose to exercise their option and purchase the asset at the agreed-upon price. However, if the market moves in a way that benefits the seller of the option (the person who contracts to sell), then they may “assign” their contract to someone else – meaning that they no longer want to buy/sell the asset, but would like someone else to take on that responsibility.
This can be jarring if you haven’t factored it into your decision-making when trading options, so it is important to be aware of the possibility.
This is why traders need a higher trading level to sell options contracts or verticals.
Overcome by: Be okay with buying the shares if you are assigned. That is a part of your trading plan.
6. Legging Into Spreads
It is a common mistake for traders to get legged into spreads by entering positions when the market price has moved away from their position. They may have gotten caught up in the belief that they are being a “smart” trader by trying to profit from the spread.
The problem is that they are not taking into account that their cost basis must go up in order to maintain the position. If the market price of the underlying goes up, their cost basis must go up as well.
Overcome by: If you are not comfortable with this advanced strategy, then exit your options contract and place a new one.
7. Trading Illiquid Options
Trading illiquid options is a mistake because traders are taking on too much risk, with potentially disastrous consequences.
Illiquid means that the option cannot be bought or sold at the given time.
In other words, the option is not tradable. When traders trade illiquid options, they are taking a risk that their trades will not be executed because there is no liquidity in the market at that time. They have to hope that the market will become liquid again, and they can then sell their position or buy back their option at a lower price.
Overcome by: Check option volume and open interest at your strike place. Verify you have interest in moving your contract.
8. No Exit Plan
It is important to have a plan in case your trading strategy doesn’t pan out as planned.
This will give you the peace of mind that you won’t be left high and dry without an exit strategy.
With options is it more difficult to limit your risk to reward. As a result, you must decide your exit plan in advance.
Overcome by: Develop your trading strategy and include how and when you will exit the option contract.
Ready to Avoid these Trading Mistakes?
Investors are often their own worst enemy when it comes to trading.
They make emotional decisions instead of logical ones, and this leads to them making costly mistakes. Plus there are many technical errors new and seasoned traders are still making.
In order to be successful in the markets, investors must first learn to accept their losses and move on. Only then can they put that mistake behind them and focus on making profitable trades in the future.
In this post, I shared some of the more common trading mistakes that people make and how to avoid them.
Now, you have to work to avoid these trading mistakes and be profitable.
Know someone else that needs this, too? Then, please share!!
Mortgage lending is largely about the numbers. The process of originating a mortgage is logical, mathematical and should, therefore, be predictable.
From a homeseeker perspective, the process of searching for and purchasing a home is both logical and emotional. The logical side of the process often means a long list of requirements like square footage, number of bedrooms and baths, school quality, proximity to work and shopping, etc.
But for those searching for a home, there is a fair deal of emotion that factors into their decision to make an offer. Who hasn’t fallen in love with a property and conjured up visions of what life could be in a new home? This is likely one of the reasons real estate agents are known to say, “Marry the home, date the rate.”
Once the homeseeker has found that dream home, it’s now time for them to figure out how they are going to pay for it. And while you might think that this is when the homeseeker flips the switch from emotion to logic, our recent research suggests that there is a strong emotional component to the financing of a home. Keep in mind that, for most, going through the mortgage application is something that happens a small handful of times in their lives.
Earlier this year, CreditXpert fielded a national survey of those that had recently purchased a home, refinanced a mortgage or anticipated being in the market for a home in 2023. Through this survey we wanted to better understand how consumers think about their credit, the process of applying for a mortgage and what they thought about CreditXpert’s predictive analytics tool that gives them the precise steps they need to take to reach a target credit score.
After showing the participants the tool, we asked them to share the top three reasons they would use CreditXpert to improve their credit score. The number one reason (“will help me save money over the life of the loan”) was clearly logical and not much of a surprise to our team. But subsequent reasons caught us by surprise and clearly pointed to the emotional side of the mortgage application process.
The pink bars in the chart below clearly spell it out. Homeseekers cited more confidence that they were getting the best interest rate (28%), felt empowered to work with their lender (25%), took the mystery (fear) out of the process (21%), gave them more confidence (there’s the confidence word again!) they could qualify (20%) and took some of the stress out of the process (18%).
The mortgage application process is stressful, meet your borrowers where they are
All borrowers start out hopeful and get excited when they see a home that’s nearly perfect. As the deal gets closer to the closing table, applicant anxiety begins to enter the red zone. There are always one or two reasons for the applicant to panic before it’s all signed and then, when it’s all over, they swiftly go from elation to exhaustion, as they realize how much this process took out of them.
For the loan originator, the mortgage is a transaction. For the borrower, the mortgage makes a life-changing event possible.
Not to put too fine a point on it, the chart makes clear that for the mortgage borrower the housing/mortgage transaction is much more emotional than logical.
Building empathy to build applicant trust
The perfect example of by-the-numbers mortgage lending is the refinance transaction. If it makes sense, it’s clearly visible in the numbers for everyone to see. There is little emotion for the homeowners either, as they are only in the deal to get a better rate and term.
A purchase mortgage transaction is different.
New homebuyers are strapped into an emotional roller coaster and once they make the offer, they are in a desperate rush to the closing table.
Demonstrating empathy and understanding towards your borrowers is crucial for building trust. When people feel genuinely heard, understood and cared for, trust builds.
The simple act of helping your borrowers improve their credit score helps build that trust by empowering them, building their confidence, taking the mystery out of the transaction and overall reducing their stress. In a highly competitive market, that’s a recipe for closing more loans.
For those that need help qualifying for a mortgage, improving their score can be lifechanging. For those that are well qualified, improving their score could help you make a more competitive offer and lower their cost of homeownership. And for those where an improved score would not result in a better outcome, the simple act of showing them that you are shaking the trees and working hard for them will increase transparency, build trust and help you close more loans.
Is fear stopping you from starting a new business or side hustle?
Almost every day, I receive an email that goes something like this: “I am afraid to start my side hustle and put myself out there. How do I get over this fear?”
This is a common fear for anyone starting something new.
Today, I am interviewing my friend Christine on ways to overcome your fears when starting a new side hustle or business. Plus, I ask her other mindset and productivity questions I often hear.
Christine is a former full-time blogger turned certified life coach, freelance writer, and online marketer. She has tried a variety of side hustles and online businesses, and she is here today to share helpful advice to get you started with your business or side hustle. Christine is also the creator of The Harbor, a life coaching monthly membership specifically for online entrepreneurs.
Some of the questions I ask her include:
How can a person decide if a side hustle or business is for them?
How can someone get over their fears of starting a business and actually begin?
What’s the best planning method for productivity?
How can entrepreneurs create better work-life balance?
How can someone stop being overwhelmed when starting a new business?
What do you think a person should do if they are feeling burnout from their side hustle or business?
And more!
Starting a new business or side hustle can lead to many questions and fears, which can prevent people from pursuing their dreams and finding ways to make money.
With today’s article, you will learn how to overcome your fears and take the necessary steps towards starting a successful business or side hustle.
Please enjoy this interview.
Mindset and Productivity Tips For Starting A New Business
Please give us a little background on yourself and what led you to become a coach.
After college, I was stuck in jobs that paid barely above minimum wage. I didn’t have any valuable work experience or skills. And shockingly, my arts degree was not a money maker 😅.
Eventually, I started blogging on the weekends as a creative outlet from my soul-sucking full-time job. I eventually was able to replace my full-time job income (Thanks in part to your Making Sense of Affiliate Marketing course! I enrolled when you first launched it).
I spent four years as a full-time blogger and as my blog and I each grew and evolved, I started to feel ready for a change. My blog provided a lot of step-by-step, actionable advice. I saw over and over again that my readers weren’t creating lasting change in their lives because there wasn’t a deeper mindset shift.
This is what led me to pursue coaching. I wanted to learn how to help people use their minds to create lasting change in their lives.
Instead of keeping my blog and transitioning it to this new niche, I decided to sell it, give myself time to immerse myself in an amazing coach certification program, and start fresh with a brand new coaching business.
What side hustles and online businesses have you tried in the past?
I often feel like there’s not much I haven’t done!
I tried my hand at proofreading but realized it wasn’t for me. I’ve created low-content journals for Amazon KDP (super fun!). I’ve just barely scratched the surface of selling Canva templates on Etsy.
With my blog I pursued many forms of income:
Because of my blogging experience, I’ve been able to do some amazing side hustles.
I’ve done a good amount of freelance writing. This has been a good income source for me. However, I find it quite mentally taxing, so I can’t do a large amount of it.
I still have a few very part-time virtual assistant clients. I enjoy the variety of virtual assistant work and getting a peek into how other people run their online businesses. Plus, the pay is good!
I also do marketing work for a mid-sized literary company.
Because I was a one-woman show and did everything myself as I built my successful blog, I’ve found that I have a lot of valuable skills! My successful side hustles have come because of my blogging background.
What do your thoughts and emotions have to do with making money?
Everything! If you want to make money, learning to manage your thoughts and emotions is extremely important. Especially for side hustlers and entrepreneurs.
Here’s how our lives basically work:
Our thoughts create our emotions. Based on our emotions, we take action (or don’t). Our actions create the results we have in our lives. In this case, the result would be making money (or not).
Thought ➡️ Emotion ➡️ Actions ➡️ Result
When we talk about making money, we’re usually focused on our actions and results, right? But our actions are created based on our thoughts and emotions.
So! An example:
You want to send a series of three sales emails to your list to make money. Making money is the result that you want.
If your thoughts are things like: I don’t want to bother people, people will think I’m pushy, or tons of people will unsubscribe, you’ll probably feel timid.
When you feel timid, what actions do you think you’ll take? You might procrastinate, send one email instead of three, and come across as apologetic instead of confident.
The result of your actions is likely going to be that you don’t make much money from your email list.
So just to sum it up, here’s what happened:
Thought:I don’t want to bother people.
⬇️
Emotion: Timid.
⬇️
Actions: Procrastination, sending fewer emails than planned, apologetic vibe.
⬇️
Likely Result: I don’t earn much money.
But what if you had a different thought? Maybe you intentionally choose to think: What I’m sharing has the potential to help my readers immensely. That is going to lead to very different emotions, actions, and results.
Thought:What I’m sharing has the potential to help my readers immensely.
⬇️
Emotion: Excited.
⬇️
Actions: Write emails with confidence from a place of wanting to help people, send all three planned emails because I don’t want anyone to miss this valuable information.
⬇️
Result: I follow through with my plan, serve my audience, and (probably) earn money.
Our thoughts and emotions completely change how we show up for our businesses. This massively influences the amount of money we make as well as our daily experience of being an entrepreneur.
How can a person decide if a side hustle or business is for them?
I think that alignment is the key. There are endless ways to make money and everyone will tell you that their way is the best and for good reason–it worked for them! But it worked for them because it felt in alignment for them.
I am extremely introverted and have tried to follow methods from extroverted entrepreneurs for gaining clients. While I had a bit of success, I hated every second of it because it was so darn draining for me!
To decide if a side hustle or business is right for you, it’s important to think about the actual day-to-day work you will be doing, not just the result you’d like of making lots of money.
If you enjoy the daily tasks, you will be more likely to succeed. You’ll make more money AND enjoy the process.
How can someone get over their fears of starting a business and actually begin?
I love this question because I’ve seen it come up since the day I started blogging.
I’d see new bloggers spend months trying to make their website look just right and get every single little element in place and then get super panicked about making their website public.
Side note: Making your website live does not mean 10,000 people are instantly going to find you (if only!). Your website can be live the entire time you’re working on it. Almost no one is ever going to see it until you start really marketing it.
So much fear comes from perfectionism. This is not about wanting everything to be perfect because we have high standards. It’s wanting things to be perfect so that we can protect ourselves from all possible criticism.
There are two things that most experienced entrepreneurs know:
Nothing will ever be “done” or “perfect”. Your business will always be growing and changing. So press publish, share it on Facebook, and tell the world about it. Striving for perfection stops you from making money and helping people.
What you do is not for everybody. Criticism can actually be a good thing. It means that what you’re doing is not bland, safe, and boring. It is memorable and will likely help you gain raving fans!
Yes, it can feel vulnerable to start a side hustle or business. This is another reason why learning how to manage your thoughts and emotions is a powerful skill.
If you have the desire to try something, I hope you will honor that desire and do it! Nothing is ever wasted. No matter what happens with your venture, the skills you learn along the way will be valuable and may lead to bigger and better things later on.
What’s the best planning method for productivity?
I get this question a lot and the answer is: whatever works best for you in this phase of your life as long as you use the 4 keys I’ll share below.
I spent years getting epic amounts of stuff done by using time blocking to schedule my weeks. However, a year and a half ago, my husband became unable to work due to chronic illness and I became his caregiver.
Suddenly, time blocking did not work for me at all because I never knew how much assistance my husband would need each day. I needed a planning method that offered more flexibility.
Some weeks, I use a good old-fashioned to-do list. I also have developed a planning method called the Check-Boxes Method that I use quite often. And sometimes I use a more simplified version of time-blocking.
Any planning method can work, but it needs to incorporate these 4 keys:
Strategy: having an end goal for every single task on your schedule.
Prioritization: decluttering your schedule so that you’re doing the few things that make the most impact.
Working distraction-free: everyone knows they should do this, but hardly anyone does.
Daily power hours: scheduling a chunk of time each day to do all the little stuff so that you free up more time for focused work.
(I go into each of these in more detail within The Harbor’s foundations course.)
If you feel like you can’t find the right planning method for you, it’s probably because you’re missing one or more of these keys. The method matters much less than the execution.
How can entrepreneurs create better work-life balance?
The #1 most important thing to do if you want to create better work-life balance is to define what that means for you.
The term work-life balance is really vague! It conjures up images of one of those banker’s scales where you have to have exactly the same amount of weight on each side for it to be balanced. But work-life balance is more about intentional imbalance than 50/50 balance.
There are weeks when we spend tons of hours working and times when our personal lives take higher priority. The key is to have this happen on purpose.
So what does ideal work-life balance look like for you?
Is it working 35 hours per week?
Is it never working at all on the weekend?
Is it working 60 hours this week so that you can fully unplug for an upcoming vacation?
Work-life balance can be about where your thoughts are.
For me, work-life balance is mostly about my mindset and being intentional. I want to be “all in” on whatever I’m doing.
If I’m watching TV in the evening, I want to be all in. Single-tasking. Not also scrolling on Facebook or checking emails.
When I’m working, I want to fully focus on one task at a time with as many distractions eliminated as possible.
Here’s a journaling exercise for you: What do you imagine your life would look like if you had perfect work-life balance? Out of your answer, what can you do today (even if it’s little) to start incorporating better balance into your life?
This exercise is worth repeating regularly. Maybe ideal balance this month looks very different than it did last month because of the life changes you have going on.
How can someone stop being overwhelmed when starting a new business?
Learn one new skill at a time and ignore 99% of the advice out there.
It’s sooo easy to get overwhelmed when you’re starting out. There can be a lot of new skills to learn and every piece of advice will tell you 21 more things you need to do to be successful.
When I started out as a blogger, I focused completely on creating a regular posting rhythm. I just wrote and posted blog posts weekly. That’s it.
Once I felt comfortable with that, I learned Pinterest marketing and incorporated that into my schedule. So I was writing blog posts and marketing them on Pinterest. That’s it.
Each time I got comfortable with a skill, I learned something new: Creating an email list, adding affiliate links to my posts, creating digital products to sell, etc. (Not the order I would recommend doing these things in anymore, BTW.)
Whatever business you want to create, you don’t have to come out of the gate with every ideal element up and running. This is a marathon, y’all. You’ve got to be in it for the long haul.
Also, if you want to buy a course to learn a new skill, buy one course and incorporate everything you learn from that course BEFORE buying another course. One thing at a time!
What do you think a person should do if they are feeling burnout from their side hustle or business?
Oh man, this is such a big important topic for entrepreneurs! I’ll just dive into one aspect of it that I see most often in my clients.
Someone experiencing burnout should work on improving the quality of their rest and downtime. Us entrepreneurs and side hustlers have a tendency to always be half-working.
We work while we’re watching TV, check our email throughout the weekend, and respond to social media comments as we’re getting into bed.
This means that we’re never fully “off the clock” and we have a really crappy quality of rest and downtime.
Surprisingly, rest can be super uncomfortable! Our brains often tell us that it isn’t safe for us to rest. You might have thoughts like:
I should do more.
I could be doing…
I haven’t gotten enough done yet.
When you’re thinking about all of the things you could or should be doing, resting brings up underlying fear and anxiety. That’s OK! This is an opportunity to feel your emotions, allow them to be there, and then redirect your thoughts to ones that will serve you better.
Some ideas of intentional thoughts for your downtime are:
It is safe for me to relax.
I am allowed to rest.
Rest is good for me even when it doesn’t feel amazing.
Creating more separation between work and downtime helps us recharge and recover from burnout. You need time to be fully off the clock–even if it’s just for two hours before bed. The quality sometimes matters more than the quantity.
Side note: Your best business ideas will probably come to you when you’re fully disconnected from work. I get amazing ideas in the shower. When your mind is free to wander, it comes up with fabulously creative plans.
What other tips do you have for someone who wants to start side hustling or start their own business?
Just do it! 😂
Honestly, my tip is to stop looking for tips and start taking messy action. Do it wrong. Do it badly. Consider every part of it an experiment and a learning process.
You can’t research your way to success.
What can a person learn from your coaching membership? How would this benefit someone looking to start a business or side hustle? Can you tell us about some of the people who have successfully taken this?
The Harbor is for online entrepreneurs who want to step into mindful productivity. I show my clients how to earn more while doing less by zeroing in on the tasks that will truly move the needle in their businesses and then making those happen.
A huge part of this process is learning how to process your emotions and choose thoughts that serve you. It’s this deeper work that most people don’t want to do. But it leads to success that is anti-burnout and anti-busyness.
If you’re just starting your business or side hustle, you will learn so many foundational skills that will help you set up a sustainable business: reducing overwhelming, creating a doable action plan, time and energy management, taking action from an empowered mindset, and more.
Some client-favorite topics that I coach on include:
Creating Your 1-Hour Growth Plan
Quality Rest and Downtime
Setting and Sticking to Boundaries
Overcoming Procrastination
Accountability
Time Management Methods
Workbooks are included in the membership so that everyone can apply the lessons to their unique situation. Plus clients can always get one-on-one help through weekly group coaching calls and unlimited written coaching.
I work with online entrepreneurs and side hustlers just starting out as well as established entrepreneurs that are working on expanding their teams. Bloggers, virtual assistants, life coaches, writers, and more.
I’ll share a few results directly from my clients:
“In just a few months I have gone from burnt out and overwhelmed to excited about my business and working on the things that are really going to move me forward in the direction of my goals. The Harbor has really helped me to get clearer on how to balance my business and personal life.” ~ Kayla, Virtual Assistant
“Each week I left with systems to implement that freed up more of my time. With the time that I was able to reclaim, I was able to work towards getting ideal clients. Not only was I able to get two new ideal clients, but they were booked at my highest fee pricing yet.” ~ Cassie, Pinterest Manager
“I realized during our sessions that I wasn’t working strategically, and even though I was busy, I wasn’t doing the things I needed to in order to get results… My biggest wins were getting new clients and seeing that I had everything I needed to keep making that happen.” ~ Shayna, Life Coach
“I was struggling with putting too many tasks on my weekly to-do list and feeling bad about not getting more done. Now, I have a streamlined weekly schedule that makes me focus on only the most important tasks with less guilt over what I’m not getting done.” ~ Jessica, Blogger
“I struggled with figuring out how to scale my business. I was mentally exhausted and so stressed at the end of each workday, and couldn’t see how I could take on any more work or clients. I enjoy my work far more with the new systems and am scaling my business to levels I never thought possible.” ~ Erin, Email Marketing Specialist
Most entrepreneurs and side hustlers think that they need to learn a new strategy to earn more money. What they actually need is to learn skills like mindful productivity, how to overcome procrastination and overwhelm, and how to do fewer, high-impact tasks.
I often tell people that you don’t need to learn a new strategy. You know enough. You need to fully apply and incorporate what you already know. That’s what The Harbor is all about.
You can learn more about The Harbor by clicking here.
What’s holding you back? What questions do you have for Christine?
When my father died in 1995, he left behind a small life insurance policy that awarded each family member $5,000. It wasn’t much, but it was the best he could do based on the fact that he had cancer. He hadn’t been much of a planner, and hadn’t been good with money, so that $5,000 per person was actually a significant amount.
At the time, I was deep in debt. I had over $20,000 in credit card balances, and was gradually adding more all of the time. If I’d been smart, I would have taken the proceeds from my father’s life insurance and used them to immediately repay $5,000 in debt. But I wasn’t smart.
I used $1,000 to pay off debt (and patted myself on the back for it), but spent the rest on a new computer, software, and accessories. It didn’t take long to realize that this was a dumb decision.
You see, when you receive a windfall, whether it’s a tax refund, an inheritance, a gift, or from any other source, it’s like you’ve been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.
Related >>How to Spend a Tax Refund
It can be tempting (as I well know) to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you’ll be just as unhappy as you’ve always been.
Since my father died, I’ve received a few other small windfalls (and a very large windfall when I sold Get Rich Slowly). With time, I’ve developed a system for handling these situations.
If you receive a chunk of cash, I recommend that you:
Keep 5 percent to treat yourself and your family. Let’s be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you’re going to want to spend some of it. No problem. But don’t spend all of it. I used to recommend spending 1 percent of a windfall on yourself, but from talking to people, that’s not enough. Now I suggest spending 5 percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall. Don’t be tempted to spend more!
Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.
Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It’ll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that’s $50 extra you’ll have available each month. Most of all, repaying debt will relieve the psychological weight you’ve been carrying for so long. Don’t underestimate the feeling of freedom that comes from no longer having creditors.
Fix the things that are broken. After you’ve eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you’ve been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you’ve been putting off.
Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don’t do it. Take some time to breathe. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts. Be sure that the account is as difficult to access as possible — no ATM card, no easy transfer to your other accounts, no nothing. (An online savings account is good for this. So is an account at a small, local bank in the next town over.)
Make a wish list. Allow your initial emotion to pass, getting over the urge to spend the money now. Live as you were before. Meanwhile, spend some time learning how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy. Resist the temptation to spend the money now, but do run the numbers to see what you could buy.
Related >> Which Online High-Yield Savings Account is Best?
In the end, it’s often best to take the remainder of a large windfall and invest it for growth.
You’ve already repaid your debt and fixed the things that are broken, both of which are methods to spend on your past. You’ve also used 5 percent to treat yourself and your family, which is money spent on your present. The smartest move with the rest of the money is to spend on your future by funneling the funds into an investment account. (If you don’t know how to do this, consult an investment professional.)
When I sold Get Rich Slowly in 2009, I received a large windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, however, and made measured moves designed to favor long-term happiness over short-term happiness. Yes, I spent some money on new furniture and a trip to Europe. But I also set aside money to pay my taxes (fortunately, I was debt-free by that point) and to fix the problems in my life. (I was 50 pounds overweight in 2009, so I allocated $200 per month to becoming fit.)
Today, the bulk of my windfall still sits in the same place it’s been for the past five years: an investment account. When first I put the money there, I thought I might use it for something in the not-so-distant future. That didn’t happen, and now I’ve had time to get used to the idea that I have a large chunk of money that can act as a sort of “personal insurance.” That cash eases my mind. It helps me sleep easy at night. And that’s more rewarding than spending it on new toys could ever be.