Let’s admit this, we have all heard of stories about individuals making huge sums of money through their passive income. Subconsciously, we find ourselves thinking, “How great would it be to make my money work for me too?”. Whether you’re early or late to the party, it’s never to late to start growing your money rather than letting them sit in your bank account.
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Goal Setting
“Begin with the end in mind,” is an attitude that has been drilled into my mind since my schooling days and the same principle applies when it comes to investing. What do you want to achieve? What is the magic number you want to see in your bank account? It is not just the value that is important, the duration of this process is as important too.
While your ultimate goal may be retirement, having short-term goals and milestones you wish to achieve along the way is a good method to ensure that you are on track. In fact, consider other goals, retirement is not the only goal in life.
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Do your Homework
Always prepare yourself before going for war. Needless to say, there is a lot to read, analyse and ponder over when it comes to investing. When we are talking about your hard-earned savings, the stakes are even higher. After putting in so much time and effort to accumulating that sum of money, you do not want them to just go down the drain. There are many resources online and books offline. Many of your peers may already be making their money work so why not ask them for advice or anything you are unsure of? It is important to think of investments as opportunities rather than gambles.
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Deciding your Investment Style & Strategy
Now that you have done your homework, ask yourself how risk adverse are you? This ties in with your current financial status, taking into account how much savings you have, how much money you have to spare and how much loans do you have. Remember to ensure that no matter what happens, your emergency fund is left untouched and you have sufficient monies to pay your bills. After all, you do not want money to come in from one area and money to go out from another.