The one mistake that turns sensible investors into panic buyers

I was working with a private client who had a lump-sum of money available to invest. We’d spent some time getting her clarity on her financial position, adding some structure to her finances, and building her understanding of investing. This gave her some assurance, calmed her nerves and improved her confidence in preparation for investing.

But the money was still sitting there, in her account – uninvested. Despite all the progress, she felt restless: that task was looming over her head, waiting to be ticked off the checklist.

This is something I see in clients a lot: urgency, restlessness, impatience. This feeling of: “I should be further ahead than where I am right now,” or “I’m behind”, or “This is taking too long.”

That’s understandable. There is messaging everywhere that reinforces this: from gloom-and-doom headlines that make you lose sleep at night, to the never-ending comparison one can fall into on social media, so no matter how far you get, it never feels like it’s enough.

Many people are convinced this anxiety is helpful. It’s what motivates you to get things done, to achieve and progress. To some extent, that may be true.

However, often, this anxiety also pushes people into rushed decisions that just cause more anxiety down the track. For example, you have a lump sum of money you know you “should” invest, but you don’t know how – so you hand it over to the first financial adviser you talk to or buy the first property some family member says to because you just want it off your plate.

For a short time, you’re relieved. But quickly, you’re now worried about whether it was the right move.

One of the most powerful but underrated skills you can develop on your wealth journey is the ability to tolerate anxiety without reacting to it. Here are some perspective shifts that will help:

Learn to measure progress differently

When it comes to money, we are often so anxious to fast-forward to the outcome that we don’t consider anything else progress. We want more money in the bank, we want the house bought, the money invested, the ROI delivered – we want tangible results, and we want them fast.

But that’s not how it works. There could be many steps before you arrive at the outcome. Maybe you never had much exposure to the idea of investing until later in your life. Perhaps it took a while for you to overcome your fear of risk.

Getting to the finish line isn’t progress – every step towards the finish line is.

Maybe you never thought it was even possible for someone without a professional financial background to invest on their own. Maybe you first had to figure out how to stay out of debt and save consistently before investing was an option. Maybe you had to make a few mistakes and lose a bit of money to learn a few lessons.

If you’re impatiently waiting until you finally have $X in investments or $Y net-worth you’re missing (and devaluing) all the progress you’ve made until that point. Getting to the finish line isn’t progress – every step towards the finish line is.

Sustainable progress beats fast wins

Everyone will sell you fast results – because fast sells. But having now supported hundreds of clients in creating (collectively) millions of dollars of financial outcomes – I can tell you that it’s usually the ones who aren’t trying to rush to the end, who end up growing the fastest long-term.

The ones who have achievable goals that they can be excited about. The ones who aren’t measuring progress solely by the number, but by how much they’re learning and growing. The ones who are enjoying the added clarity and confidence that comes with figuring out one more piece of the puzzle – knowing, trusting, that piece by piece, the puzzle will be completed.

This is what gives them the ability to stay the course, without getting tired, frustrated, impatient, burnt-out – and ultimately, why they get faster, bigger results, long term.

This takes the ability to enjoy the journey – and not just the outcome. This can be tough when it comes to wealth because – well, of course you just want the outcome, duh. Everyone just wants the money, right? Surely, no one enjoys something as dry and boring as investing, right?

Listen, I get it. I disliked finance so much in university, I switched my major to economics. But I didn’t have to find enjoyment in the subject itself – I found satisfaction in building my financial confidence, in figuring out something that previously seemed too complex and so on.

So, celebrate every milestone; see each step as “one-step-forward” instead of “look-how-far-I-still-have-to-go”; and find satisfaction in your own growth, not just the pot of gold at the end.

Paridhi Jain is a money and mindset coach who combines practical strategies with mindset transformation to help clients create more freedom and fulfilment in wealth, work and life. Find Paridhi at: skilledsmart.com.au.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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Paridhi Jain is a money and mindset coach who combines practical strategies with mindset transformation to help clients create more freedom and fulfillment in wealth, work, and life.