Introduction
A lot of people believe that investing is difficult and is only possible when you have a lot of money packed somewhere, but it is rather about planning, choosing the correct types of assets and managing risk properly.
Many of us think that investing is difficult but when you break it down you'll see that it's something that is doable, we all can do it.
The main goal of investing smartly is to grow ones assets without necessarily exposing oneself to risk.
My goal when I decide to start this blog is to gradually take us through the wealth building journey on how we can grow together and build lasting wealth.
I'm going to be giving simple explanation and simple points on how to grow ones finances.
Always Have A Clear Financial Goal
As an investor, the importance of clear financial goal cannot be over emphasized, it'll help you understand market sentiment and how you should plan for investments.
These could be
- Investing for short term or long term
- Investing for retirement or a maybe a house
- Building personal wealth, i.e wealth accumulation over a time period.
- Also know the level in which you are and the amount of risk you can take at the moment.
Truthful personal assessment of risk and risk level one can accommodate.
Some people, especially starters panic when the market fluctuates, and there such people should go for short term or safer assets and accumulate wealth gradually.
If you know you can handle the ups and downs of the market and your equity can cover you during the days when the charts are red, then you might be a long term investor and might gain from long term gradual rise in prises and long term market dynamics if you chose the right assets.
Also it is know that younger people can take more risk than older people because most young persons have the time to possibly still recover any form of losses accrued.
This does not in any way mean that every young person should go ahead on reckless investing because no one will like to see their hard earned money been swept away.
Diversification Is Key
Just like the old saying
Don't put all your eggs in one basket
Ones investment should consist of
Stock
Bonds
Real estate
Cash/ savings
Safe Crypto assets e.t.c
It is even more interesting when you open your portfolio to see a vast array of assets. For me I personally respect individuals who have consistently grew their assets over the years because that alone says alot about them, it shows that these people have some great amount of financial literacy and discipline.
Diversification not only protects you from market downturns but also gives you something to fall back on in events of losses and helps so you don't lose all your assets I'd eventually you make any mistake with your investments.
Grow but more importantly, be stable.
Financial freedom is not all about money doubling and rapid growth in assets and portfolio.
It's more about stability.
A smart portfolio have two major types of assets
- Assets that grow their wealth over time.
This include stocks, equity funds and business investment - Assets that grow slowly but provide stability.
These include assets such as bonds, fixed income funds and savings.
The growth assets produce wealth and returns quickly but high risk because they are more volatile, while the stable assets grow slowly but provide more security.
With platforms like inleo where one can see a vast array of assets that not only provide long term growth but short term dividends and security.
Assets such as $SURGE that is linked to $Lstr the primary token of @leostrategy and linked to it's long term plan for growth allows for long term growth and weekly dividends paid in HBD.
Also $TTSLA which is pegged to RWA Tesla allows one to not only enjoy Tesla stocks at a cheaper rate but afford both security and daily dividends paid in HBD while tapping from Tesla legacy and potential for long term growth. It even yield better than $TSLA.
Image gotten from TTSLA manager's thread @ttsla.yield
Don't End with One Investment, Do It Regularly.
There is no perfect time to invest, regularity and consistency is what actually builds wealth, so even if you start small, make sure to be consistent.
You could decide to do it on a weekly basis or monthly basis.
Even if the first one didn't do so well, don't give up, review your options and your choices and try again.
Thank you for checking out my blog, do feel free to drop your comments, upvotes and reblog. Also come back some other time as I will be dropping other important finance lessons.
Posted Using INLEO
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