We are all striving to increase our earnings in one way or another. Many have come to learn that relying on one source of income such a salary is simply not sufficient in a world of ever rising costs. Saving for your children’s college fees or for that dream house demands that you increase your efforts and make more money. If you yearn for financial freedom, you must invest and more importantly invest wisely. Growing your income is the key to financial independence. Increasing your income can only happen if you can set aside money from your current earnings and spend it on projects that can grow the cash. Investment options are many and a large number of potential investors get confused in the process. However, with the right information, coming up with individual investment plan that suits you is really not that difficult.
Selecting the best investment option is tricky at best. Investing confidently requires that you know what you’re getting into as you commit your money. The route to take should be informed by a number of important factors including but not limited to;
· Availability of funds. You can dream big but how much you can invest boils down to the surplus cash you have after meeting your daily obligations. The ability to meet your day to day needs and still save some money is the first indicator that you’re ready to invest.
· What are your investment goals? To invest confidently, you must clear cut and achievable goals. Short term goals call for an investment with a fast turnaround. If you have multiple goals, you must factor all of them as you prepare your investment plan. The expected returns should also be quantifiable with an acceptable margin of error.
· Market intelligence. It is absolutely critical to have adequate knowledge of the market or industry where you plan to invest your hard earned cash. Research has consistently shown that many investors have burnt their fingers getting into businesses they hardly understand. By carrying out due diligence on business prospects, you can greatly reduce the risk of losing your money on a bad investment.
· Be ready for any eventuality. It takes a lot of effort to accumulate a reasonable amount of cash for investment. The thought of losing it is unbearable for many investors. However, the hard truth is that a large percentage of investors not only fail to grow their investment, but lose it entirely. This should not dampen the spirits of investors because only those who dare to invest succeed in business.
Protecting your Investment
Naturally, the greatest priority for most investors is to protect their investment. However, given the unpredictable nature of business, you can never be too sure. An incredible truth is that the riskiest investments are the most profitable. Despite this, most investors are understandably to venture into unchartered waters if there’s no recourse if things go awry. Having your NI card can be instrumental when applying for an insurance package for your investment. This is because the NI card is the most recognizable form of identification.