5 Investment Habits to Try to Double Your Passive Income

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For me, the best way to get passive income is from dividend-paying stocks. I can aim to double my passive income by reinvesting the profit stream to help multiply my winnings.

The goal is to have more passive income from stocks later when I need it – perhaps when I retire. But if my passive income potential is to continue to grow, I will need to invest well. So I’ve adopted five investing habits.

1. Invest regularly

I like to invest once a month. To do this, I set up automatic transfers to my chosen funds and shares. For me, the habit of regular investing is one of the keys to building wealth over time. I hope my consistent approach will help offset the effects of volatility in the long run.

2. Diversify

Rather than putting all of my money into just one or two stocks, I aim to diversify across several investments. So my tracker money and stocks cover different sectors, geographies, and business sizes from small businesses to large corporations.

But I’m also diversified across asset classes as well. To do this, I own property, cash as well as stock.

3. Emotions management

We humans are emotional beings. But emotional responses can stand in the way of a good investment. For example, with stock prices weak at the moment, I think it’s a good time to invest in stocks to hold them for the long term. But it does not appear to be so. All the disturbing news in the headlines makes me feel like doing anything but investing. However, these are my feelings on the way. I need to keep them under control.

4. Adopt a convenient strategy

Many different investment strategies can be successful in the stock market. But it’s important for me to stick with one I can live with. My strategy, with all its rules and quirks, may be unique. And this may be true for everyone.

5. Invest for the long term

My goal is to get the most out of the makeup process. And for me, that means sticking with winning stocks over the long term as the core companies double their earnings growth year on year. However, I probably won’t pick winners every time. Therefore, I am ready to correct mistakes along the way by selling shares if it is clear that my investment thesis has failed.

I am optimistic that these habits will continue to serve me well for many years to come. But positive results from investing in stocks and shares are never certain or guaranteed. Lots of things can go wrong in business. It is even possible for me to lose money on my stock investments over time.

However, I stick to these habits and am optimistic that they will help me build wealth while being a committed lifelong investor.

Originally published at San Jose News Bulletin