A lot of people come into my DM asking what kind of investment they can undertake when inflation is high and income is low.
Before you think about investing, there are certain things you need to know.
Let us talk about them here.
1. The very first thing to do when you are just starting is to set clear and realistic investment goals based on your time horizon, risk tolerance, and financial objectives.
Your goals should include retirement planning, saving for education, buying a house, or growing wealth.
2. After your investment goals have been set, you then need to decide which investment type is suitable for your investment goals. It is crucial to understand the various types of investment options available, such as stocks, bonds, mutual funds, real estate, and more.
Each investment vehicle carries different risks and returns, take time to study and understand them to be able to choose the best for your goals.
3. You may start with one investment option but with time, plan to diversify.
Diversifying investments is important to manage risk. By spreading investments across different asset classes, regions, and industries, you can reduce the impact of a single investment’s performance on their overall portfolio.
4. It is essential to evaluate and manage the risks associated with investments. This includes researching investments thoroughly, understanding market conditions, and having a contingency plan in case of unexpected events.
5. Successful investing usually requires a long-term view.
Short-term volatility and market fluctuations should not deter you from your long-term investment plans.
Patience and discipline are key to achieving investment goals. Impatient and greedy people fall for Ponzi scheme and lose their money at the end.
Be patient!
If you are unfamiliar with investing or you prefer professional guidance, feel free to chat me up. As a Finance Coach, I will provide personalized investment strategies based on your circumstances and goals.
Contact us if you require our service.
Start today to create the future you desire.
TemiAlade-Mustapha