It’s almost a month since I shared anything on this blog and it was mainly because of multiple reasons. Mainly because it was July end when I have to get my Income Tax Returns Filed along with the first time filing returns for the companies I formed last year that added lot more extra work than I expected. To drain all my energy out it was month of Ramzan. So let me get re-started once again to blogging ways with an article on evergreen rules to investment.
1. Always Have Target for your Investment
When investing, you should always have a target for your investment and this target should be time bound. From time to time try to come back to your investment to see if your investment will be able to achieve the target in the time frame you had and if it is something realistic, you can continue to remain invested or else it may be time to think about either switching your investment option or may be add more to your investment or even making your target more realistic.
The target for your investment may not always be financial but it can also be materialistic like buying a better car or may be a super cool bike. At times such materialistic targets help much more than financial target of X amount because you will set targets for things that you may not want but you love to have them and so you tend to make more savings and try to invest where you expect better returns driving you into habit of better saving and investing.
2. Get Educated About Investments
This is where most of us make a fat big mistake. There are very few people who want to get educated about investments and still want to be excelling when it comes making money from their investment. Do you think it is realistic to be excelling in something without the proper education or guidance?
Just ask for yourself how many books you have purchased to get yourself educated about investments and the answer would be very few. Getting yourself educated about making right investment decisions is always the right way forward.
Yes I know it is impossible for everybody to be an investment GURU when you have so many investment options like Real Estate, Equity, Gold, Forex or may be even some businesses and this is when financial planners comes into picture where you can hire an expert to get the right advice for you and get a financial planning done for you.
3. Volatility is Part and Parcel of Life & Investments
Let me tell you one simple incidence here. Lets say you want to jump as long as you can. Now what you can do is from the standing position you take a step for jumping and the second option is to take a step backward and then launch yourself to jump. What do you think would be the better choice for you to get the maximum distance covered? I am sure it will be the later option and this is what life is all about. You have to be ready for volatility for your investments and get yourself prepared for it.
If you expect to make tons of money without experimenting new ways to investment, I am sure you just want to be following the people and it could be that you should be ready to take some portion of your investment to be experimental investment as well. May be invest in some business that you understand slightly or may be invest in some small PAN shop in your locality that you think would give you better returns going forward.
Get yourself surrounded by investment minded people who can inspire you for saving and investments. If possible try to develop relationship with individuals who you know have done some financial planning, as that will help you to be more organized in your financial planning. Share your views in the comments below.