How to Keep Your Cool (and Grow Your Money)
Recently, a member of my Financial Freedom for Creatives Club shared something that inspired everyone in the group:
Since January, she’s earned $25,500 in her investment portfolio.
Now here’s what makes that result even more impressive — when she first joined, she was terrified of investing. She preferred her money close by… like, “tucked-in-a-drawer-at-home” close by.
She also told me she thought she was “too old to start.” (She’s in her 70s!)
But fear didn’t stop her.
Instead, we took it one step at a time. She followed each step we covered in our Investments Training, learned how to make smart, values-aligned choices, and stuck with the plan — even when she got a bit nervous.
When the stock market dipped earlier this year, she didn’t panic and pull her money out.
Instead, she scheduled a call. Together, I coached her through her emotions and tweaked the portfolio.
That steady mindset made all the difference.
Why Emotions + Investing Don’t Mix
A recent Morningstar study found something fascinating (and a little painful): investors who let their emotions drive their trading earned 1.2% less per year than the funds they invested in.
Here’s why that matters:
The average annual return for all mutual funds and ETFs over the past decade was 8.2%.
But the average investor only earned 7%.
That gap — just 1.2 percentage points — might not sound huge. But over time, it’s everything.
Imagine investing $10,000 for 40 years.
At 8.2%, you’d have about $230,000.
At 7%, you’d end up with around $150,000.
That’s an $80,000 difference — simply because one investor stayed calm, and the other chased or fled the market based on fear.
What We Can Learn from This
We humans are emotional creatures.
When stocks soar, we want in. When they drop, we want out. But those gut reactions are the very things that shrink our returns.
The truth is, investing well isn’t about outsmarting the market — it’s about managing your emotions.
That means:
✨ Having a clear asset allocation strategy (how much in stocks, bonds, and cash).
✨ Rebalancing once a year — not every time you see a scary headline.
✨ Adjusting gradually as you approach retirement (reduce risk, don’t eliminate it).
If you do want to try your hand at active trading, keep that playful experimentation to a smaller portion of your portfolio — the rest should be slow, steady, and grounded in strategy, not adrenaline.
The member who made $25,500 this year didn’t just grow her money — she grew her confidence.
She replaced fear with knowledge, and nervousness with patience.
And that, my friend, is where true financial freedom begins.
Try This This Week
Before you log in to check your accounts (or panic-scroll the latest market headlines), take a breath and ask yourself:
“Am I reacting… or responding?”
Reacting comes from fear. Responding comes from intention.
Your money — and your peace of mind — grow stronger every time you choose patience over panic.
So this week, your challenge is simple:
✅ Check your investment plan — not your emotions.
✅ Review your goals, your time horizon, and your allocation.
✅ And then… do nothing dramatic.
Because sometimes, the most powerful money move you can make is to stay steady.
With Love & Gratitude,
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