Investing is Simple, but not Easy

By definition, Easy means something achieved without any effort/s, whereas Simple means something uncomplicated and easily understood. We all know what investment is all about, but it needs a lot of effort, practice, dedication, consistency, discipline, courage, conviction & patience to take the decision when dealing with your own finances.

 

Why do the majority of people fail to make money through investments? - Just because they make it complicated and mesh their entire investments. Investing is not at all easy, however, with simple rules & steps, we can make it somewhat easy. Simply follow the checklist of dos and don’ts and being making yourself aware, it will save a lot of your time, efforts, energy & money.

Key steps to understand to improve your personal finance:

 

·         Understand the importance of Financial Planning

·         Get your Financial Goal list s in writing

·         Maintain budget - stay out of debt whenever possible

·         Lifestyle - focusing on the things you need, and not wasting money on wants

·         Know your Risk Tolerance

·         Create & maintain Emergency Fund

·         Automate investing via SIP / STP - a proven tool for wealth creation

·         Have conviction & patience – you don’t get fruits immediately after seeding

·         Start early to get benefit from the power of compounding

·         Financial Behavior – the ultimate key to success

·      Protect your asset via adequate Term Plan, Personal Accidental, Health Policy & Critical illness Plan

·         Don’t time the market – you can never ever invest in bottom & exit in peak

·         Monitor & Review your portfolio at regular interval

·         Take professional help for analyzing your financial status

 

Through proper financial planning, you can streamline:

 

·         Your finances

·         Improve cash flow & manage debt

·         Lower personal income taxes

·         Plan for retirement

·         Plan for education/marriage expenses

·         Improve investment performance

·         Lower investment risk

·         Reduce insurance cost

·         Maintain current lifestyle

·         Implement & monitor various recommendation

·         Inherit of assets to next-generation via estate planning

  

Always remember, the ultimate aim of the investment should be getting peace of mind & generate wealth over a period of time. 

Investing is not supposed to be easy, anyone who finds is easy, is stupid – Charlie Munger