Creating a simple investing roadmap with a goal is a necessary step toward financial success. Having a well-defined strategy will help you make sensible financial decisions and reach your long-term goals, whether you are a novice or an experienced investor.
“Money doesn’t grow on trees” however it does gets overprinted at your local federal reserves. Like a tree, money grows when each dollar is utilized and accounted for properly. The best way to build your nest egg would be to invest and invest wisely. Saving up for emergencies and investing should be your first priority as there is no better time to begin than today.
Knowing how to secure your financial well-being will open up more opportunities for you to maximize life. It doesn’t take genius to become wealthy, you just have to follow a few basic steps and stay consistent with your road map. A great starting point would be to create some plans, adapt your budget to your lifestyle, and always have a goal set in place.
Motivation is key, it is better to aim high and fail than to never aim at all because even if you miss… you still landed somewhere on the road map. Once the game plan is in motion, it is time to execute the plan.
What is An Easy Investing Roadmap?
The first step of investing starts with saving. In this article, we will be discussing how you can save money and start investing. It doesn’t matter where you begin as everybody has a different starting point, what matters is creating good habits to utilize the money. Once you start applying the basics, you more opportunities will appear in your road map.
Don’t waste time:
Life is short and time is very precious and limited so budget and allocate your time wisely. Investing may seem difficult, but as long as you research and stay consistent there is nothing you can’t achieve. You don’t have to become the next Warren Buffet (still should be your goal), as long as you invest effectively and stick with your budget (road map) progress will be made.
Hesitating to invest, it is normal as there are thousands of news on the internet showcasing how investors can lose big or even become bankrupt. Yes, investing comes with its own risk, but with great risk comes great rewards. Start your research now as there is no better time than today to begin!
Make an effective financial plan:
Making an effective financial plan begins with you and your outlooks on life. It will depend on your outlook on life, your future plans and goals you seek. Do you plan to get married and have kids, a house, complete your education, or even travel. So, there is a no one plan fits all, create a financial plan that FITS your future goals is impeccable.
Begin with your list of plans and decide which goals you value most, highlight them and create your list. Now make an estimate calculation of how much time will it take to complete each goal. This is very important because you don’t want your saving or investment to come in the way of completing your goals as it will play a major role in completing your future goals. To summarize create your future plans according to your budget and don’t forget to calculate time (most important).
Pay your debts:
One of the most forgotten parts of an investment road map is paying off your debts as interest will be eating you alive. Debts won’t let you focus on other important investing plans and will give you extra stress you do not need. It’s very rough invest while paying off your debts even if the interest rate is “lower” so your main priority should be clearing your pending debts in order to save and invest money effectively. Start by reducing your expenses and start stay on track with your budget plan.
Prepare emergency funds:
An emergency fund is a financial cushion that allows you to deal with unexpected financial problems. It can cover a huge part of emergencies such as family debts, health problems, economic downturn, business losses, and many more. Keeping your emergency funds easily accessible is very important because in emergencies you generally won’t have too much time to gather funds.
So, how much money you should keep as emergency funds? Usually, it depends on your income and your life cost expenses day to day. In general, you should save at least 4-6 months of expenses such as debts, groceries, medicines, and other necessary things.
Reduce your expenses:
When we have money in our hands, we always want to spend them to fulfill our wants. We want to buy things that are trendy, cool, or to show off maybe. It may give you pleasure momentarily, but that rush of dopamine won’t last long. Reducing your expenses cutting out unnecessary wants will add up and save a lot of money.
You can start by making a list of expenses that you would spend regularly. Now eliminate the unnecessary things that won’t impact your day-to-day life and keep the items that are necessary such as food and medicines. Be careful and review all items on your budget as you will find that there are hundreds of things that consume a lot from your income such as subscriptions. Cut out items you don’t use maybe just have one streaming service instead of multiple.
Invest in good products that last longer as cheap products could breakdown quickly making it not worth it. Higher quality generally will last longer than cheap and low-quality products, items like furniture, carpets, cooking stuff, and other home appliances are a big part of our lives and we do not want to be purchasing those items multiple times.
Side or part-time jobs:
Not everyone capable of doing part-time jobs along with their regular jobs, but if you have the option of doing part-time jobs that can be a new stream of revenue. You don’t need to go out for part-time jobs as there are plenty of options available for remote.
Jobs such as freelancing offers you to work from home and you can offer your services to clients around the world. If you don’t have any current skills for the labor market you can always learn new skills such as graphic designing, web development, and many more. This extra income could be the difference in helping your investing journey go much more smoothly.
Start Investing:
Saving money is important, but what is more important than saving? The answer is INVESTING. Most people work hard at their 9 to 5 job but only a few of them become successful. The average American lacks knowledge when it comes to investing.
We waste our time and money by throwing them into unnecessary things. You won’t become successful if you work for hours on end for a company and don’t properly utilize your savings. Most successful people understand how to utilize their time and work efficiently. The path to becoming successful begins with investing so begin your investing journey and you will achieve your goals in no time.
Investing your savings in assets that give you a profitable return is very important. Investing in stocks, equities, bonds, mutual funds will give you at least 5%-10% higher interest than regular banks of course there are risk so always do your DUE DILLIGENICE. Many of the wealthy and successful people invest their savings or a part of their income in assets that could appreciate over time.
Set Investment goals:
Setting up investment goals is very important, you must decide if you want to invest in the short term, or long term. It will help you to understand your priorities and decide how much should you invest. Decisions such as retirement or life events can be a huge variable to everybody’s road map so there is no one plan fits all. If you want to invest for your retirement, investing in the long term will be profitable and if you want to invest for life events such as marriage or buying a house then investing in the short term can help you out. Set your investment plans according to your life goals.
Invest in yourself:
Investing in yourself allows you to deal will stress and keep yourself motivated. It is important to spend quality time with yourself and with your family. Go out for a dinner with your friends and loved ones or go on a vacation once a year to recharge mentally can-do wonders for motivation. Investing in yourself allows you to build a secure and strong foundation that later helps you to deal with difficult situations and motivates you to live your life to the fullest.
We hope this article has given you a brief idea of how an investment works and now it’s time to set this road map in action. Remember to save/accumulate as much money as possible first and keep a portion of it for emergencies. Investing is not easy; it takes time to understand how it works so really understand your investments before you go all in. If you are a beginner, make sure you are investing in small amounts to gauge a feel.
Once you’ve gained knowledge and feel conformable you can start investing more aggressively. Diversifying your investments can help reduce the risk of loss. Investing in assets allows you to create a new income stream and your assets will help you to generate income. Invest in assets and let your investment do the work for you. You can only work 8-9 hours a day but your assets can work for you 24/7.
