An Essential Guide to Investing Your Money
So what is the best investing money advice today to help you achieve your financial goals? Actually, there are many tips that will provide help to you on your road to financial freedom.
However, by far the most important thing you need to know is what you want your end result to be. This is certainly the most important beginner investing or advanced advice you will ever get. Hopefully, this stock investment advice will help you to achieve your goals, whatever they may be.
Quite simply, many investors jump into the investment field arena without having a clue for what they want to accomplish through it. It doesn’t matter how good of an investor you are-without knowing your final goal, you will never get anywhere with your investments. This would be akin to getting in your car and just starting to drive without knowing your final destination.
Here’s your first investing money advice: you need to sit down and map out what you want to accomplish with your investments. Do you want to achieve a 15% annual return? How much money do you want in the bank for 1 year from now? How about 5 years from now? 10?
As you think through this, also keep in mind what you plan on doing with this money. Just wanting to make a lot of money will not provide a lot of motivation; however, knowing that you could buy a new house, boat, or car with this money will be all the incentive you will need to achieve your financial goals.
Another great price of advice for investing your money is to write out your goals and place them in an area where you can view them often. It’s often been said that the simple act of writing out a goal is enough to help you achieve it.
This evokes one of the greatest laws in the universe, which is an attraction. By continually visualizing your end objective, your mind will subconsciously work on ways to help you get there.
Once you know what your financial end will be, now it’s time to map out your course for getting there. This will obviously be different for every investor. The two most common investment methods are real estate and stock investing.
Neither way is better than the other; many have made a fortune with each. Your final decision will completely depend on you, your tolerance for risk, and what you want to achieve.
For instance, if all you want is to be able to buy a car in the next 6 months, then you won’t want to risk your money with stocks, real estate, or mutual funds. These are long termed investments and should be viewed as such.
Most investors view these vehicles as ways to get in and make a quick buck. Nothing could be further from the truth.
All the top stock and real estate investors will only invest in a particular investment if they can be sure it will go up for the long term, contrary to popular belief. Most investors want to make a million dollars overnight and this will rarely be the case.
If your goal is to have enough money to purchase a new car in 6 months, then you will want to focus more on short term bonds, or something else that can be assured of going up. This obviously isn’t as exciting as real estate or the stock market, but it will be the best method to help you achieve your particular goal.
An Essential Guide to Investing Your Money
Remember, it really doesn’t matter which method of investing you choose. The best investing money advice that you could ever receive is by simply knowing where you want to be at the end of it. Only after deciding on this should you even start to consider which investment to put your money in.
