Investing money on something nowadays is a big decision that shouldn’t be taken lightly. That said, if the idea of investing gives you panic attacks, there are ways to make the experience a little less stressful. Specialised consultants like My Wealth Solutions can take a lot of the headaches and stresses out of investing for you but there are some other ways you can take the stress out of investing.
Clear and Present Purpose
Why are you looking to invest? What purpose will your investment serve? Will it add income, or are you shopping for a capital gain asset that may not make much in the way of income now, but you’re banking on its value rising for sale at a later date? Getting clear on just exactly what you want your investment to do in relation to your financial goals and strategies narrows your options, and helps you make calm and considered decisions about where to place your money.
Line Up Those Money Duckies!
Getting your finances organised in advance will take a lot of pain and angst out of the investment process for you. This includes your last two years’ tax returns, and lists and approximate values of assets and liabilities (including cash reserves and superannuation), as well as your last three months’ worth of payslips if you’re a wage earner, or two years’ of balance sheets if you’re self employed. With these basics in place, you need never be caught out when the deal of a lifetime shows up right under your nose.
Everyone thinks about how to get into the investment vehicle they’re keen on, and what way to structure their initial financing. However, it’s also important to ensure you know how long you intend to be invested in a product or service and have an exit strategy implemented in case this investment falters.
Make sure you’re as ready as you can be when you start investment shopping. This will minimise delays and take a lot of the stress out of the experience. It also gives you maximum negotiation room; if the other parties in the investment want your funds and you’re ready to go right away, they may be willing to sweeten the deal for you.
Finally, the best way to remove the stress from investing is to have a clear strategy for yourself. That way, you can measure every opportunity against your long term financial plans and if the opportunity fits, then you can get to work on your due diligence, etc. If not, no matter how attractive the deal seems, you can pass. By having a strategy you’re happy and committed to, your investment decisions can only get easier and clearer.
Any investment decision should fit into your overall financial strategy. Knowing exactly why you’re getting into an investment opportunity is as important as knowing how. Likewise, it’s a good idea to have a plan for what comes next if all you’re hoping for comes to fruition – and if it doesn’t.
What do you think causes the biggest headaches for investors? Losing money? Rising taxes? Share your opinion via the comments box below.
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