Do you have an investment plan in place?
If not, it could be what’s holding you back from being financially successful.
An investment plan is important because it takes every aspect of your finances into account.
And having the right plan that fits your lifestyle is the quickest way to financial freedom.
You decide to start investing, that’s great, you want to be extra sure that you’re on the right path for success.
Creating an investment plan is more than just selecting the stocks you want to invest in.
An excellent plan gives you a holistic view of your financial situation.
It takes into account your goals, your current financial situation including your debt-to-income ratio, and the amount of risk you’re comfortable taking.
From there, you’ll have a clear understanding of how much money you can invest.
So let’s take a look at some of the elements that make up really strong investment plan:
1. Evaluate your current financial situation
What is your Income? what you debt? what are your average expenses? the reason you do that is because this helps determine how much you can tighten the belt to determine how much you have to invest.
2. Define your goals
Where do you want to be for retirement? do you want to buy a house? what do you want to do in terms of creating passive income.
These are all aspects that you can think of in terms of kind of financial goals.
3. Decide what kind of investment you should make
Real estate, stocks, bonds, gold or small business or portfolio of different assets.
Then, you want to establish some sort of timeline.
This is when you start to think about making the promise to yourself and commit to specific results that are measurable in terms of dollars and in time. Write it down because your action will be based on your level of commitment.