Can you balance today with tomorrow? How about with next year? Are you able to resist the lure of instant gratification in order to gain future rewards? These are just a few of the questions you need to be able to answer in order to become a savvy investor. In fact, these questions are the basis for becoming an investor in the first place.
Have you noticed how difficult shopping has become lately? It’s challenging just to go into the grocery store today, because everywhere you turn you are being bombarded with enticements to buy things you hadn’t planned on, and probably don’t need or want. Even driving down a street, there are signs advertising something everywhere, and they’re all designed to tempt you into visiting the many store and shops in the area. If you use a Smartphone, you probably have the latest model and want all the bells and whistles (applications) to go along with it; have you noticed how those phones let you buy anything-anywhere-anytime? It’s all too easy to do because most people never turn their phones off. It makes me wonder how anyone gets any sleep?
If you can just convince yourself of the importance to invest in the markets via stocks, Exchange-Traded Funds (ETFs), or mutual funds, and then balance your desire, your ‘buy now’ with your ‘buy later’ forces, you’ll not only become wealthier, but you will be in a better position to buy what you want whenever you want it. Take an honest look at your checkbook. Just seeing how long your paycheck lasts should be enough to convince you that if you continue to do what you are currently doing, you’ll never get to where you want to be financially – unless you invest some of your money in the markets.
To put it another way, what are the chances you will receive a 25% pay raise next year? What about a 10% pay raise this year and every year for the rest of you life? Probably not likely in either case, but unless you can say, “yes” to those questions, your only hope for increasing your net worth by 10% or 25% every single year is by taking a bit out of every paycheck and investing it wisely.
Before you invest, you need to be clear about what investing is, and what it is not.
Investing is NOT:
- Socking away your cash in a jar
- Dumping your money in a savings account
- (Note: While making temporary deposits into a savings account instills good discipline, they aren’t designed for long-term gains)
- Buying stocks that relative or friends or co-workers say are a ‘sure thing’
- Committing to a better lifestyle
- Following a structured path to increase wealth
- Establishing a plan to obtain the thing you really want
- Using proven methods (strategies) to buy stocks, ETFs, or mutual funds – methods that make you money.
The good news is you don’t have to live like a pauper; you do, however, have to live like you want a better future and be willing to do what it takes to grab a hold of your dreams.
The keys to achieving financial success involve:
- Setting aside money to invest on a regular basis
- Deciding how much time you have for investing
- Picking a investment software program or other method for managing your investments
- Deciding how to diversity your investments in order to safeguard your money and still be able to reach your financial goals.
You Can Be an Investor, the Choice Is Yours. Will this be difficult? Is it scary? Sure, but weren’t you scared the first time you drove your car in rush hour traffic? If you are willing to say, “I am going to do this because I really want to achieve my dreams!” then the most difficult part of investing is already done…by simply saying, “I can do this” you have made a commitment to yourself and you’re ready for the next step to safe profitable investing.
Raymond M.F. Dominick is the author of “Invest Safely and Profitably” (Your Success Guide), available from Amazon.