Well, I have always been wanting to write on topic revolving on Finance and finally I turned this dream into reality. I always have the thought of writing on Finance is very technical, boring and dull but it turned out be way better that I thought would be.
Well, sometimes things aren’t what you always imagine them to be, they are even better. Clearly shows it here via this piece of writing.
Now, here are my thoughts on the Five Factors To Consider Before Making Your First Investment
Ideally, budgeting a sum of the extra money that is unspent from your monthly wages is a form of monetary value investment .While depositing your investment in a bank is still the safest mode of investment; the method will only keep your money safe instead of growing them into profitable liquidity.
Today, the term‘ investment’ has been taken to a whole new level as society is constantly seeking acceleration in investment of funds— yet in the most steady money growth possible. To achieve a long term investment goal, be it retirement, sending your child to college, starting a business; you need to invest money in a place where you can potentially earn more.
In other words, we are basically telling you to go hard or go home – shoot for the stars, so even if you fall, you’ll live amongst the clouds
How do I make money out of money?
Firstly, here are the five factors to consider before making your first investment:
- Setting of Financial Goals
Set clear financial goals of the investment. For clearer vision on your goals, draw out a financial roadmap to enable you to identify the objectives of your investment—why are you doing it and whether or not there is opportunity for growth and where do I see myself in 5 years from now
2.Access your personal current financial situation
Before jumping into investing, you must be very clear of your financial situation.
Take into considerations of how much do you earn currently? How much from my earnings can I invest without having to reduce consumption or or giving much my social life? In short, are you ready to sacrifice in order to gain more in the long run and how much should you sacrifice
By analyzing your current financial situation, you will have a better idea of where you are and where you want to be financially in future.
3..Return of Investment – ROI
Right! Now that you know your investment goals and your current status, time to evaluate whether you’re a conservative, moderate or growth aggressive investor. From here, you will decide on the type of ROI ( Return of Investment) you want. Rule of game, every investment should always come with a return. An without the ‘R’ ( return) is as useless of a fifth wheel, where money is not leveraged and grow. On the other hand, the more money you invest , the higher risk you are standing at– so go where does the “go hard or go home” principle come in?
4.Speaking to a financial adviser
What good is shooting for the stars, if you aren’t sure what to expect? But, don’t just talk to anyone – speak to an industry expert and read up as much as you can about the investment world. We don’t want to set you up for failure
5. Risk Tolerance
Every investment is an opportunity for fund growth and also a risk to fail even harder. Back to the general rule, the higher the risk of an investment, the more potential for higher returns. Anyone can take risks, but not everyone is comfortable with the ups and downs of the stock market and economic fluctuation.
Robert Kiyosaki once said ‘you have to be smart. The easy days are over” – now that you know the basic rules of investment, make it your mantra and embody it in your daily life. Let’s put in the hard work now, for the easy days to come.
Now, that you have heard from me, you shall now get a gist of how to do your first investment. See you at the top 🙂