You see, the most successful investors in our world today were not made in a single day, as the popularly saying goes “Rome was not built in a day”. If you have it in your goals and plans to become a successful investor someday, then you really should pay attention to this article.
Firstly, what is investment? A simple definition of investment would be; an asset or item acquired to generate income or appreciation.
Appreciation means the increase in the value of an asset over time. Investments could come in different ways, it could come in form of money, property, your time and even your effort with hopes of a greater yield or return in the long run. However, as earlier stated, becoming a successful investor does not come easy.
You could invest and end up losing your capital, not getting anything in return, and sometimes even go bankrupt!
However we are here to offer you guidance and advisory services on the safest and right way to go about investing. This is why we have put together this piece which consists of four easy steps to a successful investment journey.
1. NEVER INVEST IN A BUSINESS YOU DO NOT UNDERSTAND
When it comes to investments, you should always make sure you do not make the mistake of investing your hard-earned money and assets into a venture you know little or nothing about. Some people make this mistake all because of the promise of huge returns they might get in the long or short run and later end up regretting their actions.
Read books about that particular investments you are about to go into, ask people that have been there before you, find out every possible detail that you need to know about it. Doing this would go a long way in helping you invest the right way and avoid costly mistakes.#
In most cases, it is very beneficial to understudy certain successful people or work under a mentor for some time before setting out to invest. It helps with understanding the concept of investment. Working with a grounded investor who could also be a mentor in business provides you with a template on investment. This way you not only have a first hand experience of investment but also a fair understanding of your intended investment and a source to fall back to for clarity whenever the need arises.
2. INVEST FOR THE LONG TERM
Investing for the long term may not seem exciting at the start but it is surely the best way to go as your chances of success would increase if you stick to it and not let the opinions of naysayers discourage you. A short term investment might pay off sometimes but in the long run, a long term investment is always and will always be the better option.
We strongly suggest that if you decide to go into the investment world you do it for the long term because this comes with many advantages.
Here are some benefits from investing for the long term according to ‘wealthify’;
-it can help ride out the market bumps,
-it gives your money more time to grow,
-it means less trading fees,
-it is easy to do, and
-it removes emotions from the equation.
3. STAY LEARNING
Always have an open mind to learn as an investor. You would surely make mistakes, some your fault some not, but this should never deter you as these experiences would only make you wiser and form a strong beginning for you.
You could always use these lessons as a stepping stone to breaking more grounds and getting closer to your goals of being a successful investor in your investment journey.
Always stay hungry to learn more from everyone and everything around you. The best and most successful investors today know this and always stick to it. This is also why they always stay on top.
You can take up courses on investments, whether online or offline, to help you with the theoretical knowledge of the industry. Some of these courses are free while some go for a few dollars. However, the knowledge you stand to gain are meant to last you a lifetime and can be passed on to others.
Because there are different kinds of investments, from mutual funds to property investment and so on, your choice of course would have to be specific on the particular type of investment you intend to go into. This does not mean you cannot have a holistic knowledge of investment if you wish to.
Remember no knowledge is wasted.
4. HAVE A PLAN#
A plan is a detailed proposal for doing or achieving something. It is the act of making arrangements for things in advance. A plan can also be an intention or decision about what one is going to do.
Successful investors always start with a plan in mind and on paper. Ask yourself questions like, how much are you willing to risk in your investment, how long are you looking to wait before your returns start turning in, six months, one year, or a couple of years from the time of investing?
You need to prepare yourself and provide real answers to these questions, as a successful investment is a long term journey and not a one-time event.
Investments come with many benefits. With a composed approach and a long term investment strategy, you can grow your savings into any decent investment of your choice.
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