Last Updated on Dec 18, 2019 by James W
If you want to build your wealth, then there are plenty of ways to go about doing so, including working and saving money. One of the most effective ways, however, is undoubtedly investing. When it comes to investment, there are plenty of avenues to be explored, and to those inexperienced with the markets it may seem daunting at first.
Rest assured, however, that investing is less complicated than you may think, and can help you build a significant amount of wealth in the long term (depending on how successful your investments are). Here are some of the steps to help you build your own investment plan.
First and foremost, you will need money to begin investing. How you acquire capital is up to you, but most novice investors will likely start by putting some of their wage from work aside each month. How much you invest is also down to your personal preferences, but between 5-12% of your monthly income should suffice to help you generate a decent amount of wealth over time.
You could also invest a lump sum if you have savings stashed away, but this may be riskier if the markets turn against you shortly after you invest. Never risk more capital than you can afford to lose though, as no investment can ever be guaranteed to be a success.
There are many different ways to invest your money, but most people will want to use a trusted broker such as ADSS to gain access to the markets. Brokers do charge fees for every purchase you make, so be on the lookout for those which charge the most favourable.
Make sure the broker you choose offers the ability to purchase the assets you are interested in too. If you are interested in stocks and shares for instance, it wouldn’t make sense to choose a forex broker.
As part of your investment plan you will, of course, want to carefully consider what you will be investing your capital in. There are many different options in this regard, and much will depend on your risk tolerance and financial goals.
Stocks and shares are one of the most popular choices, and tend to be less volatile than, say, currencies on the forex market. However, choosing multiple different assets/investment vehicles with different levels of risk is standard practice amongst most investors, so it is a good idea to look into all the options.
Lastly, you may also want to look into seeking the help of a financial advisor (especially if you are an inexperienced investor). Whilst most of them are pricey, they are industry experts, and can guide you towards more profitable investments based on your individual goals.
Again, be sure to shop around to find the right one based on your needs. Once you have found a good match, they will be able to help you build and maintain a long term investment plan.
These are some of the key considerations when looking to invest your money. Always be cautious of the market, and keep your plan flexible to cater for the ever changing market behaviours.