In recent years, many of us have only just managed to achieve this basic requirement, as most asset classes have not performed much better than inflation. This has led to a prevailing sense of panic among savers across all wealth levels - and once panic sets in, we start making mistakes.
Here are six ways to stay on track and avoid wealth-destroying acts.
1. Have a realistic time horizon.Investing is a long-term game and assessing your investment returns over periods of five years or longer will give a more balanced view.
2. Mind over market. When times are tough, we tend to think things will continue that way indefinitely. This can cause investors to make rash moves based on fear. The trick is to regulate the emotions it triggers in you. The goal is to not get overly excited about your prospects when things are going well, and not to get overly pessimistic when they don’t.