When the subject of Investing is raised, most people hold back because they think it is too risky and confusing but if you know how to invest your money smartly, it makes the process a whole lot simpler.
Smart investment is the process of investing your money in a smart way that can set you safely on the path to financial freedom. If the fear of losing money is holding you back from investing, you should know there are ways you can substantially reduce your risk, the longer you put off investing, the more you are missing out on your best opportunity of growing your wealth.
If you do not invest and just leave your money in the bank, the interest you get from a savings or money market account probably won’t even keep up with inflation. You could be losing money, and the longer your money sits in the bank the less purchasing power it will have. When you invest it is the opposite. The longer you leave your money in smart investments, the more your money grows. Overtime, thanks to compounding, your money can double, redouble and keep on growing. The best time to start learning about investing is now
Here are four investing principles to follow:
Know Yourself: Everyone has different investment goals and different time frames for achieving them. Some want the short-term investment plans. While others are interested in a long-term investment plans. Every investor has a different comfort level with investment risk. To better understand yourself as an investor you need to put into consideration your risk tolerance, investment awareness, investment aim, gross and annual income, approximate net worth and investment time horizon.
Get An Early Start: The effect of compounding is one of the best ways to make your money work for you. Compounding is money multiplying itself by earning return on the return, starting early makes it easier.
Invest Regularly: It is much easier to come up with a smaller amount to invest on a weekly or monthly basis than a large amount. Investing regularly allows you to choose when and how often you make investment ensuring you making investment a priority.
Align Your Investments With Your Time Horizons: The type of investment you choose should be dependent on whether you are saving for long-term or short-term goal. For your long-term goals, you may need to consider long-term growth oriented investments. Your short-term goals calls for investment that are more conservative and more accessible.
Successful investing involves making choices that meet your unique needs today and your financial goals for the future. CassavaCash provides a great smart investing plan that gives you an easy-to-follow action plan to set you up for success. Visit us now at www.cassavacash.com.
Last updated 4 months ago