We all have dreams and passions that we want to pursue. However, as soon as we start working, we abandon them, putting all the effort into making money and excelling at our careers, which many of us do not enjoy. What are we chasing that money for? Many people work extra hours so they can provide for their families. Read More
And, one day, when you look at your aspirations, they are buried, distant, and forgotten. Fortunately, you can today follow your passions without worrying about amassing wealth—with the help of investing. It can help you achieve your financial and personal goals with a consistent source of income, as long as you have goals and a vision. Let’s see how.
1) It encourages long-term planning:
A common thing between life and investing is that both require long-term planning. If you want to become a doctor, you have to spend nearly a decade in school before practising. The same goes for investing. Rewards take time, but they become consistent if your approach is right. This is why it is recommended to start investing early so you can retire early.
Let’s understand this with the help of an example: A 21-year-old who invests $5,000 in a Roth IRA with a 6% interest rate will have approximately $47,568 by age 60. On the other hand, a 31-year-old making the same investment will have around $26,697 by age 60.
So before you get into investing, set both your short-term and long-term goals. At times, your investment goals have to change because of family planning, buying a new house, an accident, or because the market is highly volatile. In any of these cases, you should be ready to make adjustments in your planning for your life goals. Set small profit targets and don’t hold trades for too long. Use a pip calculator to find out the number of pips you can capture based on your lot size and trade accordingly. Small pip movements captured multiple times a day can result in a decent profit instead of holding a trade all day only to take SL and exit at a loss.
2) Investment as a Tool for Autonomy:
Your investment should be goal-oriented. Like, if you want to retire with millions of Dollars in your corpus, then set your investment plan accordingly. Come up with a solid investment plan and stick to it with discipline. Trading can be a good way to increase your capital but is quite risky as well. So, make sure to follow proper risk management strategies while trading.
You can make use of different trading tools to find out the right margin, leverage and other important values for better trading decisions. You can easily get access to these free tools, so don’t forget to include them in your risk management plan.
Which investment do you want to try? Can this investment help me achieve my financial goals? You should ask yourself all these questions before investing your money, as investments come with risk.
3) Investing encourages regular assessment of goals:
Nothing is certain in life. In a minute, you have all figured it out, but the next day you might feel lost, reassessing your stance. When you make investments, you will feel like this often because they are not risk-free. This is why you need to reassess your investment goals and align them with your personal and financial goals.
Seeking advice from financial experts, like Certified Financial Planners, can be very beneficial at various stages of life. They can help in developing strategies to achieve both short-term and long-term financial objectives.
Moreover, it is also necessary that you understand, manage, and divide the risk associated with different investments. You would also need to perform regular analysis of your portfolio so you can adapt it to new market changes and personal circumstances.
4) It pushes you to try new things
Ultimately, the goal of investing is that you can find time for yourself, no matter where you invest. For example, YouTube is a great source of passive income if you create quality content for target users.
You might not feel comfortable speaking in front of the camera, but you have great ideas and content to talk about. You could either create content that requires less of your time or find an alternative way to present your content. This requires stepping out – meaning your early investment might not be something you are interested in; however, you still would have to try because of the benefits it will give you in the long term.
Although there is a risk, if you diversify your investments well with proper research, you can grow your overall investment portfolio. Thus, always be aware of the types of investment options in the market, be they stocks, crypto, or any new, quirky technologies. You may never know the rewards they will give you, bringing you closer to the life you dream of.
Summing Up
Attaining the life of your choice is possible today because of the myriad of investment options available. You do not have to survive on a paycheck forever. Instead, what you need to learn is how to use it in such a way that you invest and save more than you spend. If you want to begin investing, start by figuring out the goals you want to achieve. Whether it is attaining passive income with less work or retiring early, have a figure and a purpose in mind. Then you can choose the type of investment you want to try.
There are many options you can choose to invest in this digital area – from digital currencies to traditional investment options such as stocks and bonds. After deciding on the investment you want to try, give yourself time to understand it. How much money should you invest? What is the risk it carries? Generally, investments with higher profit returns are riskier, but it is still possible to make steady returns from them. Many people live by trading stocks, forex, and crypto. All because of a focused goal and slowly making its way for it.