Here comes ideas for investing money in 2018
Investing is simple but not easy !!!
Please find below the pointers to consider while preparing your investment plan
1. Goals
Investing without goals is like travelling without a destination. Some may argue that the nomads of the world travel without destination but if you are the one who want to reach somewhere worthwhile then you need a destination.
So remember if you do not have your goals & priorities set before you start investing however return you may get on your investment its not going to work for you in the long run.
2. Inflation
On epidemic in the money world is Inflation. Inflation is nothing but the rate at which value of your money is decreasing. It is literally eating your money day in day out.
So if your investment does not factor to combat inflation your whole investment program is going to go for a toss.
So make sure you optimize your investments to see it is beating inflation.
3. Beliefs around money
Understand that rules of money have completely changes. Earlier you were told that don’t take a risk but today not taking a risk is the biggest risk you are taking.
So if you are still investing with the old rules like saving money will make you rich,or always invest in safe instruments you will not able to achieve your goals.
So understand how money works and see to it that you invest smartly and optimally.
4. Psychology
Investing is 80 % psychology and 20 % mechanics.
Now it has been proved beyond doubt the role played by persons psychology while investing.
For example a generally people wants to invest where everybody else is investing. They do not consider the merit or demerit of that investment but follows the herd.
This is called as herd mentality bias.
This and many other such biases direct investment decision of people. We see this behaviour quite often in share market, real estate where when people see one particular asset class is giving excellent returns they rush to invest without looking at any other factors and vice versa and most of the time they repent because they loose money [Famous example was seen in 2008 stock market crash]
Therefore we see many so called intelligent and informative people fail at investing.
Successful Investor is one who understand these biases and stays guard against it
5. Patience & Consistency
Patience & consistency may help in all walks of life but when it comes to investing it definitely helps.
Once you decide your goals and priorities and create an investment plan it is very important for you to stick to it.
Many people fail to create wealth because they allow different voices in their head change course in between.
So the key is not act too smart and stick to the basics.
Hope these guidelines will help you.
In case of any questions on investing write to us at support@nirajnanal.com
For details, please Call us on +919130126096 or skype at niraj.nanal