Making money can be difficult, and for a lot of us, it is difficult. And that already seems like a losing battle.
Setting money aside for savings and investment is another issue entirely because it is one thing to actually make enough money to survive, and it is another to make enough to set aside and not touch.
While this might look like a devastating situation to be in, it is important to understand the importance of investing our hard-earned money (even if it is just a little). Living paycheck to paycheck is not ideal and nobody should have to live that way.
That is where investing for the future comes in. Investing so that you don’t have to work every day of your life for the rest of your life. That is the main goal of financial freedom. To get to a point where you “choose” to work because you want to and not because you only need to survive.
Investing your hard-earned money in things that would bring you more money down the line is a long-term thing. And I think this is where a lot of people get it wrong. Because of human nature to get instant gratification, we often look for the easiest ways to increase our money in the shortest time possible. This is how people fall into investment scams and Ponzi schemes that promise you quick, huge returns in record time.
But it is important to note that, truly worthwhile and safe investments take years to see returns. That is why it is important to set your monthly investment goal and leave it at that.
Find a relatively safe and long-term investment plan and automate it. And the more you earn, the more you add to the investment pool.
Here are some tips that would help you in navigating this world of investment.
- Do not be emotional — One of the main reasons people lose money when it comes to investment is being emotional. That is why it is important to have a long-term view of the market. Historically, the market always goes up and only dips from time to time. So having a long-term mentality would allow you to stay strong when the stock market isn’t doing so well.
- Set goals and re-evaluate regularly — Look at what you are doing currently and find ways to improve on it. It can be from your earnings, savings, expenses, or investment standpoint.
- Do not be greedy -Don’t be greedy and look for shortcuts because that is mostly how people get tricked and robbed of their hard-earned money.
- Only look short term with money you can part with — When looking to make a short-term quick gain, ensure it is with money you can afford to part with if things go side-ways because there is nothing worse than losing the money you can’t afford.
These are just some pointers to guide your investment journey. At the end of the day, ensure that you are making active plans to save and invest towards your future because that is one of the surest paths to financial freedom!