Being able to invest financially is one thing, but investing effectively is quite another and is the key to making your investments work as well as they can over time. Steady gains are possible but seeking spectacular ‘wins’ over a short period is probably not the best thing to pin your hopes on. There are some easy ways to make the most of your investments.
- Learn asset management
Many leave their financial management to third parties, but you can gain a lot from learning how to manage your investments even if you still use the services of professionals. Taking a more direct interest in your finances in this way can prove interesting on a personal level and help grow your profits because you’re more directly involved day to day.
For example, learning to trade properly is a good skill to acquire. Information, or even better ‘live’ training, via online or face-to-face seminars run by market experts such as IG Trading are a good option.
- Expert help
Unless you’re an expert in all aspects of financial management, then help from trusted experts is well worthwhile even if you decide (as above) to learn and acquire knowledge in this area.
Your asset management expert may either charge a fee or gain commission from investment products they might recommend to you. It’s up to you to decide what type of expert you’d rather work with.
Finding the right one may come down to recommendation from people you trust, especially those who are in a similar position to yourself.
- Proper goal setting and planning
While stocks can go down as well as up, it’s important to have a goal in mind in terms of the yield you’re aiming for and the time frame it should happen by. Realistic objectives should be set and it’s an area where a responsible asset management expert can help and advise.
A proper plan with ‘stages on the journey’, identified by date, should be drawn up which will help monitor overall progress.
- Pay off high interest debts
Clearing debts such as credit cards or loans is considered one of the best pieces of investment advice. Interest being charged on these is constantly offsetting gains you’re making from your investments, so if you have any clear them as soon as possible.
- Create an emergency fund
Build a fund that would cover emergencies such as unforeseen larger expenses, sudden unemployment, or an injury that prevents you working when there’s no sick pay (for example maybe you’re a self employed contractor or similar ‘one man band’).
By having these types of eventuality covered, you know your investments are all geared towards your financial future and not needed to possibly cover immediate needs. This can help psychologically in your investment planning and decision making.
The above talks of mainly finance-based investments such as stock, but you could consider diversification into areas that may interest you. How about fine wines? If you have an interest or expertise here it can be a longer term profitable investment, although you’d need the space and facilities to store it.
Precious metals – not just gold and silver – might be of interest, and there’s something reassuring about having something tangible in your possession. Property is an obvious long term bet if you have the capital to invest, and collectibles can be an interesting and profitable option, albeit only if you have serious expertise to call upon.