Your behavior around money can either be your greatest obstacle or your greatest strength. Often, an investor’s behavior is the biggest impediment to their success.

With over 30 years of experience in the financial services industry, Joel Johnson, CFP® joins us in this week’s Money Wisdom Question Series to share the most valuable insights he’s gained along the way.

Adopt Automatic Saving in Your 30s

Starting in your early 30s, aim to save 15% of your income consistently. If your employer offers a 5% 401(k) match, you only need to contribute 10% from your paycheck to reach that goal. Whether you set it up monthly or every two weeks, the key is to make it automatic.

In the early years of your career, don’t overthink your saving strategy. Put money into a good mutual fund and get a reasonable rate of return. You can afford to be more aggressive during these years. But as you get older, it’s important to shift toward more conservative investments that protect your assets.

If you follow these steps, you’ll be on track to living a fulfilling and secure retirement. Depending on your savings and other income, you may even be able to retire earlier than you expected.

Don’t Let Emotion Drive Your Decisions

Another key piece of financial wisdom is to avoid making decisions based on emotion. Fear often shapes our behavior; whether it’s the fear of losing money or the fear of missing out. These emotional impulses can lead people to try to time the market, which is often where they suffer the greatest setbacks.

As you get closer to retirement, remember that you’re not immune to emotional influences — no one is. Emotions affect every investor, regardless of experience. This is one reason many people benefit from working with a financial advisor.