The ultimate investing tip? Consider these first before making the big investing jump!
The BBC News recently cited a study from Oxfam that says that the richest 1% of the world increased their share of the world’s wealth from just 44% in 2009 to 48% in 2014. Oxfam predicts that the wealth of this tiny portion of the world’s population is set to grow to 54% by 2020.
The same article states that to be able to be part of that 1% club, you would have to be worth over half a million pounds or close to 67 million pesos.
You have a lot of work to do if you’re aspiring to be part of that elite club. And sad to say, it would be near impossible to achieve that level of wealth working as an employee for a corporation.
You need to invest.
Build Your Own Investment Plan
But as with every endeavour, you don’t plunge into investing straight away without having a plan or a strategy. If you need professional advice on how to go about investing, you need to seek help from a certified investment advisors who can help you choose investments that will help you achieve your financial goals.
So whether you have that goal to be part of the 1% or if even if your goal is something a little more modest such as having enough funds to meet your financial needs when you retire—a financial advisor can help you out.
To help you plan your investment success, here are five investing tips to consider before you decide to invest.
1. Define your goal
You have to have a goal when you invest. Do you want enough funds for to put your kids through college? Do you want to have retirement funds? Or do you want to be part of the 1%? Having an idea of what you want in life can help you put a price on it so you know what to aim for and what investment options will get you there.
2. Set a time frame
Having defined your goal, you now know how much time you have left before you need that money. You don’t have to be as aggressive with your investments if you have a longer time frame. At the same time, it’s important that you set smaller goals as part of the bigger goal. These should serve as milestones by which you can measure where you stand.
3. Determine how much you can invest
You have bills to pay and mouths to feed (or at least you’ve got yourself to feed) so you can’t put all of your money into investments. You’ll have to study your expenses and other obligations (like loan payment) and how much emergency funds you need to have available.
4. Consult an investment expert
There are many well-known investors who studied the art and science of investing on their own such and started out as young investors. If you don’t feel comfortable with how much you know about the risks and potential rewards of an investment, you can always get help from a certified financial advisor for investment tips.
(Lianne: You can contact me here for your life insurance and investment proposal queries!)
5. Identify potential roadblocks
The road to riches is not a straight line. Ask any investor or entrepreneur who has been in business for a long time and they’ll tell you about the ups and downs along the way. If you decide to invest purely in stocks of one industry, you have to know the risks that that industry faces that can wipe away the value of your stock investments so you can respond appropriately if these risks ever materialize.
Saving Goes Hand-in-Hand with Investing
Saving as much money as you can—by being smart about your purchases from everything such as where you shop for clothes or even to which car insurance plan you sign up for— is indeed smart, but being thrifty will not be enough to help you earn the millions or at least, grow your wealth.
Invest as early as you can to get to your financial goals quicker.
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