The way you Invest play a major role in achieving your Wealth Goals.
This is what you work for, after all, which keeps you going all the time. In addition, this is also the things which you spend the least time on.
Because the way you invest is so important, alongside where you invest, let’s take a look at how we might construct better titles geared toward producing optimal results.
- An increase in amount randomly and in an unorganized manner could not only hurt your finances and wealth goals. It would draw you down emotionally as well.
- A dream of being financially free. A dream of having a regular fixed income for retirement.But in reality, only 1 out of every 100 are able to achieve this.That’s sound so tough and unachievable, right?
So many dreams trashed
So much of time and energy wasted.
World Mental Health Day was initiated by the World Federation for Mental Health in 1992 many countries adopted it as a means of promoting mental health.
The financial problems are on the rise all over the world and WMH has reported financial depression, 300mn people affected.
How many of us have thought that Insurance was an Investment?
Someone who brainwashed into thinking that insurance is the best investment that you can make.
Or you thought for yourself that taking No Risk or Too Little risk is imperative.
With conventional methodology, it would have been very easy on saving and investments.
But to stay abreast with the rising inflation conventional ways will no longer work.
So the big question is?
- Why some succeed in Finance and some fail.?
What are the factors that separate successful financial planning from others?
The simple answer to this is:
Consistently Investing and invest a little more every year.
How To Invest A Little More Every Year In 3 Easy Steps
I’ll be frank and will talk to the point because I know you are busy & I don’t want to waste your time.
Interestingly, the majority of people invest first in all other fund and finally end up with investing in an emergency fund.
Now, this only leads to withdrawing the amount much earlier than expected.
They’re determined to invest and save in the beginning and do it whatever it takes.
I am sure you can relate to this.
Why does this happen?
The answer is simple.
An emergency fund should not be co-related with other and highest priority should be first given to emergency fund and then one should think of investing.
Now let’s discuss the 3 important steps to invest a little more every year.
STEP ONE: Investment with Fixed Recurring Income
I met someone who was struggling to have a disposable surplus even though he had a huge amount invested in stocks, mutual funds, real estate etc.
I asked him his source of monthly income.
For which he shared with me his 10 Digit Income.
It’s a task to have a ten digit income and be committed to the last penny.
This is not going to do any good to you
- You have to have a recurring fixed income and recurring variable income. This will give you a monthly surplus to increase your investments. At the same time give you the cushion financially.
STEP TWO: Uses Half Recurring Income for additional Investment
“The safe way to double your money is to fold it over once and put it in your pocket”
Recurring income can easily add up your investments over a long period of time. Income which is recurring in nature tends to be more secure compared to the investment which does not give recurring returns and grows.
In this entire process, you have created a cycle for systematic deployment of small recurring income.
A caveat is over a period of time if the recurring income is maintained in same fashion then recurring income would become negligible. So it is very important that a part of recurring income be invested in generating more recurring income.
You have to smartly deploy the recurring income so that the recurring income even after many years would be considered for investment purpose.
In this entire process now you have created the snowball effect. Which when gathers momentum will give you fruits that one would not have wondered.
STEP THREE: Do not Time the Market But Time the Returns
I have met many people who have failed miserably in trying to time the market.
Timing the market is to predict the future which in turn is Gambling.
The best way is to Time the returns, any time when your investment is giving returns which is more than the historical average start exiting the return. But do not stop the investments.
For example, you are investing regularly in mutual funds which historical average returns of 35% per annum. Your investments in mutual funds are over 5 years old and are currently giving you are a return of 45% then this is the best time to exit the investments but continue investing.
Another way around this is to increase your investment in high-risk high-return funds which are running into all time low negative returns. You can also afford to temporarily stop your recurring income investments.
How To Not Be A Failer at Investments
Now that I’ve already told you what it would take your investments to the next level. It’s time to start working on this and make the necessary corrections.
Don’t make new investments until you are really ready for it. Don’t just blindly make investments rather have fixed and variable recurring income as well. Buy Insurance for all your investments. Understand the common financial mistakes you could be making right now.
And most importantly, keep your investments simple.
Finally, start monitoring your investments if they are working for your as you have planned for them to work for you.
Follow all the guideline discussed here, and I bet you’ll find the difference in the way you manage your finance.
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