6 Steps to Help Strengthen Your Investing Habits

September 4, 2025

When people think of investing, the images that often come to mind are fast-moving stock trades, flashy headlines, or dreams of striking it rich overnight. In reality, investing isn’t about gambling on the market or chasing quick wins—it’s about building financial security over time. True investing is one of the cornerstones of financial wellness.

Financial wellness means more than paying the bills on time or keeping up with debt payments. It’s about creating stability for yourself and your family, while also giving yourself the ability to set and achieve meaningful goals—whether that’s buying a home, funding education, or retiring with confidence.

The good news is that investing success doesn’t come from secret formulas or insider knowledge. Instead, it’s about following a few time-tested principles that can help you stay on track, even when markets feel uncertain. Here are six steps that can make a big difference.

1. Start with a Clear Plan

Every strong financial journey begins with a plan. Think of it as your roadmap—it tells you where you are, where you want to go, and how to get there. A solid plan helps you assess your current financial situation, set short- and long-term goals, and outline practical steps to achieve them.

Creating a plan doesn’t have to be complicated or costly. You can do it yourself with simple worksheets, use digital planning tools, or work with a financial professional for more personalized guidance. The most important thing is to get your ideas on paper and commit to them. Having a plan in place helps you avoid impulsive decisions and gives you a framework for measuring progress.

2. Stay the Course—Even When Markets Get Rough

Market downturns can test the nerves of even the most seasoned investors. When you see your portfolio dip, the instinct to pull everything into cash can feel overwhelming. But history shows that those who stay invested typically fare much better than those who sell out during downturns.

For example, during the 2008–2009 financial crisis, many investors who sold their stocks missed out on the strong rebound that followed. Those who stayed invested and kept contributing often ended the next decade with significantly larger account balances.

The takeaway? Volatility is normal, and while it’s uncomfortable, it’s part of the process. If market swings keep you up at night, it may be time to adjust your mix of investments to better match your comfort level. But avoid making drastic, emotional moves—your long-term growth depends on discipline.

3. Focus on Saving, Not Just Spending

Even the best investment strategy won’t work without regular contributions. Saving consistently is one of the most powerful habits you can develop. A common benchmark is to aim for saving around 15% of your income for retirement, including any employer contributions if you have a workplace plan.

If 15% sounds daunting, start smaller and build up over time. Automatic paycheck deductions make saving easier and less tempting to skip. The earlier you begin, the more you benefit from the power of compounding—the ability of your money to grow on itself year after year.

4. Diversify to Manage Risk

You’ve probably heard the phrase, “Don’t put all your eggs in one basket.” That’s diversification in a nutshell. By spreading your money across different types of investments—such as stocks, bonds, and cash—you reduce the risk of any single asset dragging down your portfolio.

Diversification can go even deeper. Within stocks, you can mix companies of different sizes, industries, and regions. Within bonds, you can balance different maturities, credit qualities, and issuers. While diversification doesn’t guarantee profits, it helps smooth out the ride and makes it easier to stick with your plan during rocky times.

5. Keep an Eye on Costs

While you can’t control how the market performs, you can control how much you pay in investment fees. Expenses like fund management costs and trading commissions may seem small, but over decades they can add up and eat into your returns.

Many investors find that low-cost index funds or exchange-traded funds (ETFs) provide a good balance of value and performance potential. The key is to understand what you’re paying for and ensure you’re getting good value for those costs.

6. Be Tax-Savvy

Taxes play a big role in investing, and smart planning can help you keep more of what you earn. Certain accounts—such as 401(k)s, IRAs, and health savings accounts (HSAs)—offer tax advantages that can boost your long-term returns.

It’s also helpful to think about “asset location.” For example, investments that generate a lot of taxable income (like bonds) may be better suited for tax-deferred accounts, while tax-efficient investments (like index funds or municipal bonds) often work well in taxable accounts. Being thoughtful about where you hold your assets can improve your after-tax results.

The Bottom Line

Successful investing isn’t about timing the market or finding the next big stock—it’s about consistency, discipline, and smart habits. By creating a plan, sticking with it, saving regularly, diversifying, controlling costs, and being mindful of taxes, you’ll be setting yourself up for long-term financial wellness.

Remember, investing is not just about growing wealth—it’s about building security, independence, and peace of mind for yourself and the people who depend on you. Start with these six steps, and you’ll be well on your way.

Sources:

https://www.fidelity.com/learning-center/personal-finance/six-habits-successful-investors

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Diversification does not ensure a profit or guarantee against loss; it is a method used to help manage risk.