Web Extra: The Tenets of Financial Success
The basic tenets of financial success don't change no matter what else is happening in the economy or market. Ric Edelman offers his top three tips for the average investor:
1) Save, save, save. Picking the right investments is of no benefit if you invest little in them.
2) Focus on your goals. Investment success is not about beating the market, it's about achieving your goals — getting your kids through college, retiring in comfort and security and caring for aging parents. If you are on track to meet your goals, the market’s daily gyrations don’t matter.
3) Develop a diversified portfolio, and maintain a long-term perspective. Don’t place excessive emphasis on recent events, and remember that you’re investing to achieve goals that are years and decades away, not weeks and months.
Watch the web-exclusive video for Carmen's top tips, including what to do to make it harder to part with your money.