To start saving and investing your own hard-earned money to ensure a comfortable future, you need to draw up a far-sighted investment plan. It has four steps.
Instructions
Step 1
Set specific and realistic goals.
For example, instead of just saying that you want to have enough money for a comfortable retirement, think about how much money you need. A specific goal may be, for example, saving $ 200,000 by age 65.
Step 2
Calculate how much you need to save each month.
If you need to save $ 200,000, how much should you save each month? Determine a realistic amount that you will save each month. You may need to adjust your goals.
Step 3
Choose an investment strategy.
If you have long-term goals, you can choose a more aggressive investment strategy with increased risk. If your goals are short-term, opt for low-risk, conservative investments. A more balanced and averaged approach could be considered.
Step 4
Develop your investment policy.
She will guide your investment decisions. That is, these are certain predetermined rules on the basis of which you will invest money or adjust your investments.
Your policy should take into account the investment goals, the strategy for achieving them, the time frame and the risks you accept.
