As Suzanne Woolley writes in her Bloomberg post, she’s identified seven habits of effective investors. I would agree with her on these habits.
- Save early, and automatically
- Expect financial emergencies
- Set an asset allocation, and diversify
- Keep fees low
- Use an advisor who is a fiduciary
- Spend less than you earn
- Maximize employee benefits
I would add Avoid leverage and Avoid speculation. You should invest within your risk tolerance and risk capacity. And, think long term for retirement investing and invest more conservatively as you come closer to needing your money for college, cars, or other financial goals.