5 Investing Strategies To Last You A Lifetime15th Nov, 2017
Would you like to be able to buy a house in a few years? Become a globetrotter? Or even retire early? Unless you win the lottery, your chances of enjoying any or all of these luxuries are quite slim especially if you do not start saving and investing early.
Investment, like most aspects of life, requires a balance. It is crucial to note that your needs change over time and what was working for you last year, will not necessarily work for you this year. Thus, it is essential to make the necessary adjustments in your plan.
Understanding and implementing investing strategies that will last you a lifetime is vital.
- Invest early
Imagine a snowball rolling down a snowy slope and with each 360 turn, it increases in size. It may not trivial or visible at first, but subsequently it becomes substantial and noticeable.
This is especially vital in grasping the mechanism of wealth accumulation which has been exceptionally captured in Warren Buffett’s book “The Snowball”. Buffett, also known as the Sage of Omaha, has been described as the savviest investor in the world, hence, his wisdom should be inculcated in your life.
- Know what you are investing in
You must understand how investments work for it to work for you. This is where KCB Capital financial experts come to the rescue, they are always ready to assist with kick starting this journey. You also need to put in work on your end by conducting sufficient research that will contribute to your investment decision. Just remember to avoid investments that are too obscure or out-of-your-wheelhouse to keep up with.
- Be objective, not subjective
Don’t underestimate the effects of emotions. More often than not, investors experience stress or fear that supersedes rational thinking. Kenneth Hoffman, Managing Director and partner at High Tower’s HSW Advisors in New York says, “Separating your emotional involvement with a security from the purpose of its ownership will lead to better overall judgement and performance.” Be more open minded and objective in making investment decisions so as to avoid setting yourself up for trouble.
- Spend less
A lot of our impulse purchases and overall careless spending are due to the confusion of needs with wants. For instance, purchasing the latest gadgets is a want and not a need – you can do away with it. Think about the things you consider a norm but may not be a necessity. The less you spend on these things, the more disposable income you will have to spend on investing.
Heard of the saying, “Don’t put all your eggs in one basket”? Let me guess – Of course you have! Don’t focus all of your energy and resources in one particular investment. Due to uncertainty and the risk factor when investing, diversifying your investments is a smart way to go!
When Money Talks...
There’s two types of cousins. The Guests of Honour and the plezdents. (Allow it. I’ll be on ...
So tunaenda Men’s Conference this Valentine’s Day pia ama we are in love?
Just when January imeisha and we thought we were out of the woods ndio hizo taabu zingine in the ...