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Building A Healthy Investment Portfolio: How You Also Need Discipline, Stamina and Resilience

Dividend-paying investments can add strength and stability to your portfolio.

Building an income portfolio

This article was written in collaboration with abrdn. All views expressed in this article are the independent opinion of based on our research. is not liable for any financial losses that may arise from any transactions and readers are encouraged to do their own due diligence. You can view our full editorial policy here.

It’s easy to feel overwhelmed even before we start investing. Besides being unfamiliar with investing concepts and fearing that we will lose our savings, the amount we need to work towards can often seem a far stretch.

One way to overcome these inhibitions can be to frame our investing journey as similar to leading a healthier lifestyle. For example, we don’t need to be a professional athlete to start exercising.

Going for regular jogs and doing simple bodyweight exercises can set us on the path to keeping fit and active. Similarly, we can strengthen our long-term financial vitality with Income Investing where we aim for a regular and consistent flow of income from dividend-paying stocks, bonds and real estate.

Cultivating The Discipline To Stick To The Plan

Just like we need to create a regular exercise routine, we need to make regular contributions to our investment portfolio. Over time, this will cultivate a savings habit to set aside more as our earning power grows and financial knowledge improves.

With an income portfolio that can provide a tangible payout in good and bad markets, we can lay the groundwork for financial discipline.

Building The Stamina To Last The Long Run

Our investing journey is a marathon rather than a sprint. When we first start building our investment portfolio, it’s easy to find the motivation to invest as much as we can and devour every piece of literature on investing we can get our hands on.

However, we will only find success if we have the stamina to last in the long run. A reliable cash flow from our investments can improve our financial stamina. We will be able to steadily grow our income portfolio by reinvesting returns – which will snowball into even more income payouts as we do so.

Building Resilience That Will Help You Bounce Back Stronger

While we may do our best to exercise regularly, we may not see instant results. What’s more likely is that we find ourselves outside our comfort zone and even more exhausted in the beginning.

This does not mean what we’re doing is not working or wrong. Rather, it will take some time to see our efforts pay off.

Similarly, we cannot always control what happens to our investment portfolio in the immediate term. External factors such as volatility, economic cycles and even black swan events such as a war or global pandemic can adversely affect our portfolio.

Typically, investments that are able to sustain payouts in good or bad times are high-quality investments with inherent financial strengths. While our confidence may waver in a downturn, an income portfolio may provide just the stability and quality we need to bounce back stronger.

A Healthy Way To Grow Your Investment Portfolio

In a world where interest rates may be tapering, business cycles are diverging and political uncertainty is threatening to boil over, income investing can help investors achieve some peace of mind.

Within income investing, we can also choose exposure to Equities, Fixed Income or even Multi-Asset. We can learn more about the strategies to invest in these asset classes via abrdn’s selection of income funds.

For example, if we are aiming for regular income to serve the dual purpose of countering inflation and potentially delivering capital gains, we can consider diversified global equities.

On the other hand, if we want to err on the safe side, fixed income funds can provide a stable risk management structure to deliver income through various economic cycles.

For a mix of both worlds, multi-asset investments can offer stable income from traditional investments into equities and fixed income, while also delivering diversification via listed alternative investments.

Remember, it’s always easier to maintain good habits than to reverse the adverse effects of unhealthy habits. Choosing a strategy that you understand and can relate to is a smart way to start building your investment portfolio.

Discover how you can generate income and reach your financial goals by playing a simple game – Be an Income Champion.