Investing is Not an End in Itself- But a Means to an End…
Investment has become a buzzword in our world today and many people are aware of the importance of saving and investing. Nowadays, I hear people ask each other questions such as -- “What are you investing in?”, or “Do you save part of your income?” These are good questions. But they give the impression that you should save or invest because it is the right thing to do.
However, we have found that unless you are investing towards a particular goal, your savings and investments will be outright ineffective. It is for this reason, that we advise any potential investor to invest with an end or goal in mind. You need to determine what you are investing for before starting to invest.
Determining Your Reasons for Investing
People save and invest for diverse reasons. However, your reasons for investing will normally fall into two categories;
Afford Expensive Expenditure
A major reason why you may want to invest is to purchase assets or items which you may otherwise not afford from your monthly income. For example, you may want to buy a car, or house or pay for an overseas holiday but you may not be able to afford these things from your monthly income. In such a case, you may need to accumulate funds over time to afford the items.
Passive Income
Another major reason why you may want to invest is to have an income without having to “work”. In other words, you want to convert your active income to passive income. This should be a goal of everyone who is employed as this is the only way you can get to be financially free and retire from active employment. For example, you can invest towards owning a rental property to earn passive income from the rent.
Write Down Your Goals and have a Plan
Therefore, to become more effective in your investing, you will need to clearly articulate or write down your reasons for investing. You will then need to come up with a plan of how to progressively accumulate your funds towards meeting your reasons or goals for investing.
Rubiani Investment Course
If you need some help in writing down your goals and developing your financial plan towards meeting your financial goals, you can consider taking the Rubiani Investment Course. We have tools and one-on-one sessions that will help you easily write down your goals and develop a financial plan for your investments. To learn more about this course, we advise you to attend one of our Free Open Days where we get to share more on what to expect from the course.
Get in touch via invest@rubianiwealth.com