The New Year is a great way to make a fresh start. As far as resolutions go, the more common ones involve living healthier, spending more time with family, losing weight and career advancement. It is safe to say that most people leave out resolutions regarding financial investments and stability when it is one of the most important factors in improving your life. Whether you are new at it or already have some years of investing under your belt, here are some helpful tips for a positive year of sound financial investment.
- Set your goals
What are you looking for when investing? There are a number of factors to consider before taking the first step in investing and they include your personal background such as your financial position and age, as well as what you intend to get out of your investment. Are you looking to increase your income or are you seeking to secure your capital?
- Choose what you want to invest in
- Cash: for the less adventurous, go for cash. It is typically considered the most predictable asset class and by keeping it in a bank or building society, it is protected and you can look forward to earn from the interest that it incurs.
- Shares/Equities: the most commonly known type of investment is shares which offer investors a stake in the respective company. Investors’ incomes are relative to how well the company does.
- Fixed interest investments: these are loans to governments or companies, also known as government bonds or gilts or corporate bonds respectively, and provide investors with stable returns.
- Commercial property funds and commodities: these include metals (gold, silver, copper), energy (energy, natural gas, gasoline) and livestock and meat (live cattle)
- Take a look at your finances
It is important to be realistic and pragmatic when it comes to investing. Before you begin investing, go through your finances to determine how much money you have to set aside for investments. You should prioritize paying your monthly bills and other loans.
- Don’t put all your resources into one place
Spread your funds out across a portfolio and invest in different companies and/or commodities rather than place all your money into one company. This will allow you to cancel out any losses in one investment by possibly earning in another.
- Invest in properties
Real estate (Link to our properties) is a no-brainer when it comes to investment. Investing in a property has several advantages over other types of investments, including potentially higher returns, stability, inflation hedging, and diversification. Contact our sales team today to know your options.
- Investing through a fund
Purchasing shares directly is not only risky but expensive as well. Therefore, for those who are inexperienced when it comes to investing, it would be better to invest through a Collective Investment Fund (CIF) or Collective Investment Trust (CIT). CIFs or CITs are legal trust administered by a bank or trust company that pools multiple investors’ money and make investments with it.
- Start early
By making investments early in life, you will be setting up a solid foundation for which to achieve your financial goals. In addition to having your capital compound over time, you will also develop positive spending habits and be more disciplined when it comes to financial matters.