Investing isn’t just about putting your money into something, it is about accumulating wealth. That is as good an investment as any, given investing is just another way to try and bolster your capital. As such, we have compiled a list of industry advice on how to best go about netting yourself more capital. We hope it helps.
The best place to start when it comes to investing is your own debt. It may be a credit card, or a mortgage or student loans, it doesn’t really matter, so long as you pay this off before looking to invest elsewhere. Put it this way, if you have a have a high-rate credit card that has a 12% interest rate (ouch), then you’re paying it off will be the equivalent of investing in something that offers you a 12% return, which are unbelievable rates of return. The same goes for a mortgage, except your interest will typically sit around the 5% mark, but that can still add up over time.
This is about living below your means, which doesn’t mean simply staying out of debt. What it means is cutting costs where you can afford to. If you get your car washed twice a week, then stop. Cut it down to once a fortnight. The best way to exact this kind of self-control is to set yourself both long and short-term goals, this will give you something to focus on and maybe even a number to work toward. The more you save, the more money you have to invest. You’ll be surprised at what a radical change in your outgoing behaviour can achieve in the way of cash in hand.
Knowing how to invest money is tricky and people often make mistakes. As such, speak to people who are experienced in this area of finance, whether it be an account to help you with your savings strategy or an investment professional, like Mr. Colodne, who can talk you through private equity investments, or an estate agent who can teach all about the best place to buy. Getting the advice of experts can be the best thing you ever do because it will enlighten you as to what makes a good investment and, without knowing why you are investing, all you are doing is gambling.
The Big Picture
Too often people panic about one of their investments going pear shape instead of getting a better look at everything within their portfolio. Not everything you invest in will go to plan, which is why you should try and not focus too much on the details. A great way to snap yourself out of this habit is to change your approach to investing and almost take it out of your hands. For example, use a fund that works toward a target date, such as your planned retirement, over which time a mutual fund will workout a great strategy to meet this allocated time frame. This is underrated approach that many overlook.