You have read about investing and why investments are needed. Investing money helps create wealth for you in the long term. But, then you also have to start investing.
You might be confused. You might be having a budget. In case you don’t have a budget, a budget comprises of your monthly income, expenses, savings and investments. So create your budget now. India’s First Free Online Financial Advisory.
When you are done creating a budget, you would be sure that you want to invest, because you understand the power of compounding. The Power of Compounding means every paisa counts similar to each drop of water.
Here is a simple method for you to follow for your investment strategy. You have to consider certain aspects in order to help yourself create a Personal Investment Strategy.
1. Know your financial goals, time horizon and risk appetite
This essentially is included in the budget you just created. While you add your income, expense, savings and investments, you also add your financial goals, time horizon and risk appetite. Financial goals have time horizons like short term goals (<3 years), midterm goals (3 to 5 years) and long term goals (>5 years). Your risk appetite is nothing but how much risk you can handle. Financial Advisory Near Me
2. Can you handle stocks better or bonds better, or does some other investment strategy suit you?
You have to analyze which investment strategy suits you, your risk appetite, financial goals, time frame, etc. Is it a Systematic Investment Plan (SIP), Mutual Fund, Stock & Bond, Gold or Fixed Deposit? What suits you better? Go for it.
3. How much patience, courage and honesty do you have?
Investing requires lot of virtues like courage, patience and honesty. The question is whether you really have those qualities now. Are you honest? There is no use faking any of these qualities while investing, if you don’t have. Be truthful to yourself, be truthful everywhere. Find out if you can really be patient and brave with the markets. Financial Advisor India MoneyMindz
4. How much can I afford to lose?
If you invest X amount of money, can you afford to lose the whole amount in case something happens? This is an imperative question you should ask yourself as it will help you judge your risk appetite better.
5. Is my investment strategy effective?
There isn’t any use if your investment strategy or your investments themselves aren’t effective. Hence, you always have to figure out the effectiveness of what you are doing.
You can find more information at www.moneymindz.com with the help of Kuber Mindz, a Smart Financial Advisor or give a missed call to 022-62116588