We all like to be comfortable. It’s nice to feel that you are where you belong. However, your comfort zone might be holding you back financially. While you don’t want to take huge risks that can completely ruin you, it’s important to take some risks in your financial life. Stretch a little and step outside your comfort zone, and you might find that your comfort zone has been holding you back.
Investment Comfort Zone
For many people, the investment comfort zone consists mainly of cash and maybe some bonds that are considered super safe. However, you are unlikely to build an adequate nest egg if you remain in this investment comfort zone. In fact, you might not even beat inflation when you are overly conservative in your investment strategy.
If you want to boost your potential for returns, you need to step outside your investment comfort zone, and add more asset classes. At the very least add stocks into the mix. You don’t have to try to become an amazing stock picker to make this work, either. Index funds, and certain ETFs, are just about right to help you step out of your comfort zone a little bit and add stocks to your portfolio. You don’t have to completely abandon your senses to stretch a little.
Career Comfort Zone
It’s easy to become complacent about your career. Unfortunately, if you only stick with what’s comfortable and safe, you could actually fall behind. It’s important in your work to take on more responsibility if you want to be seen as a go-getter. You also need to become more accustomed to talking about yourself and your accomplishments if you want to get a raise.
Just plugging along, comfortably sitting at your desk won’t get you noticed, and it could mean that you are among the first to go when layoff time comes around. Exert yourself a little bit, and do something that gives you a little discomfort, and your career could benefit.
Budget Comfort Zone
Sometimes getting out of the comfort zone means forgoing some wants, or saying no. You might not be comfortable letting others know that you are in trouble, or you might need to allow others to help you in order to get back on the right track with your budget and your finances.
Learn to say no to expensive nights out with friends. Let others know that you are working on paying down debt, or saving up for retirement. Getting it out there can help the goal seem more “real.” Step outside your budget comfort zone in budgeting. Cut unimportant items from the spending plan, and say no to others, suggesting frugal alternatives.
Go For It
Whether you are starting a business, trying to build a retirement portfolio, or aggressively paying down debt, it’s important to stretch yourself a little. A challenge can help you take additional steps to get out of your comfort zone, and to help you make the changes in your life that can result in a better financial picture.