August brings many different things for families across the US:
- The Last month of Summer before school starts
- Kid’s going back to college
- Final heat waves of the year
- The start to football season
But the thing many don’t realize is that August also brings investing. August is investors month, and August 14th also happened to be National Financial Awareness Day, two celebrations shedding light on the importance of financial literacy and preparing for your future.
As children we’re taught the important lesson of delayed gratification:
- “Don’t eat all of your Halloween candy right away or you’ll get sick”
- “Go to hockey practice so you’re ready for the game next week”
- “Do your homework so you get good grades and get into a good College”
Many lessons filled our days teaching us the importance of doing something today, that will leave us better off tomorrow.
As adults, one of the clearest ways we put that to the test is by learning to live within our means and save money. This comes in many forms disguised as simple decisions we make throughout the day:
- Bringing your own lunch to work instead of ordering in
- Contributing a portion of your paycheck to your 401(k) to save for retirement
- Living in a modest home now and saving for your forever home down the road
- Paying attention to the cost of groceries, gas, and other necessities
All of these daily habits carve the path towards financial freedom. Our daily choices make it easier for us to become investors and grow our assets.
As our bank account grows, we’re able to start contributing more in the market. We learn about the different investment options available to us, what our risk tolerance is and what the expected returns associated with that level of risk are. What was simply “news” a couple of years ago, is now a means to grow our portfolio and pursue our goals.
National investors month not only celebrates those who have worked hard to diligently save and invest for the long term benefit, but it also highlights the importance these decisions hold to our future. While buying lunch here and there throughout the week may not make a major impact on our financial plan, the daily habits that we create are either incrementally helping us get to where we want to be financially, or are setting us a couple of steps back.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.