Are You an Investor or a Speculator?

By Watchara @ Adobe Stock

Are you an investor or a speculator? Because in times like these, we don’t really need an answer. That may be too personal. But you and I can simply see from the market selloff that there are plenty of speculators. You can see it in the volatility. And if someone’s selling, there’s someone’s buying. There’s always someone else on the other side of the transaction. And that’s where you come in.

You know the definition of speculation vs investing. What’s nice about being an investor in times like these is that you can pick off shares at a discount. And if you like stuff at bargain prices, you don’t have to go to the store to reinvest dividends. It’s done for you. It’s easier than Amazon Prime.

One transaction that might make sense now is to focus on taking a trip. The planning can get your mind off your portfolio, and at the end of the day, you’ll have a trip to take. I know it’s not cheap, but for many of you who follow a balanced approach to investing, this hasn’t been that rough of a period. The balanced approach is doing just fine. And don’t talk to me about egg prices. You can handle it.

The nice thing about being an investor rather than a speculator is that you can focus on income, not prices. With your focus on income, you can collect your dividends and interest or reinvest them. If you want to temporarily suspend your reinvestments to pay for your trip, you can do that. You have options. The beauty of income investing is having streams of money coming in regardless of market prices.

As an investor, you don’t need to worry yourself sick about prices. Worrying about prices is for speculators, especially those who are overleveraged and make bets on specific sectors.

Action Line: Work to make money. Invest to keep it. This isn’t a game. But once you’re on the right path, understand it’s also important to enjoy it. Bon Voyage. When you want help, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter. My most recent letter talks about bonds, when to buy and sell, and gold miners.

Originally posted on Your Survival Guy.