There are a few things to consider when investing – the first one being what is enjoyable for you. You may be the type of person who likes to sit back and watch things happen – maybe fixed interest is a place for you to start. If you are more hands on, trading in stocks and shares could be fun for you. If you are into more sporadic periods of activity, you could consider real estate investing. These are not by any means the only vehicles or areas available for investment. Wealth and business coach, and and facilitator for Right Riches for You, Margie Hulse shares her tips on how you can watch your money grow.
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A major fundamental to investment is never borrow to invest. All investments carry an element of risk – no matter how safe they may seem. Banks have collapsed, share markets tanked and properties have been destroyed. All this may seem rather scary – it’s not really. Just work out what level of risk you are comfortable with – you need to be able to sleep at night. There is no use having your money work for you if you are stressed out about it. Ask yourself, “will this investment be a contribution to me? If I invest here what will my life be like in 5 years?” You will get a feeling, either light or heavy. If it is light, then that is true for you and the direction to go. What is true for you may not be true for someone else, which is why someone’s great recommendation on a particular investment opportunity may not work for you. How you are as a person will be amplified by money. If you are anxious, then choose investments which have less obvious risk. If you are impetuous, it may pay to spend time looking at the investments you are choosing and ask questions to establish the validity of your choice.
You are more likely to have success with investments if it is an area you are interested in. Another key to investing is to research – see what is happening in the area of investment you are interested in. Read the blogs, follow the financial world’s trends, get an understanding of how the world of finance and money works. Even if you are not in a position to invest right now – keep reading, researching and reviewing. Follow your “gut” instinct for when it is the right time to invest. You are more aware than you realise. You don’t have to invest all your money in one place, start small and get a feel for how you function with money and investments.
When you make investments determine what your long term goal is. Do you want to invest to build capital to take out and invest somewhere else, or are you staying in that particular sector for the long haul? Either way it is important to know what your strategy is and have some guidelines in place. That way, when fear or greed creep up, you can simply look at your guidelines and choose based on them. For example, if you are in for the long haul, you may choose to ignore market fluctuations, or if in the case of stocks, take the profit and reinvest when the price drops. All markets are cyclical, some cycles are just much longer than others.
Talk to the people about investments and what they are doing. Don’t necessarily follow them, use what you know to decide what is right for you. Stock brokers, real estate agents, fund managers, bankers, accountants and solicitors are all people with a wealth of knowledge in investing. They will have seen what has worked and what hasn’t. The majority of people are willing to share their expertise with those starting out. Having a chat to some of these people may open your eyes to possibilities you had not considered. You do not need large amounts of money to start investing. The key is to just start!
Making money should be an enjoyable event, not one fraught with stress and uncertainty. Have fun with your money and you will create so much more.