This doesn’t sound like good advice and definitely is easier said than done. Especially, in markets as we are witnessing today – where excess liquidity thanks to low and lower interest rates are driving up prices for all kinds of assets and financial securities.
It is exciting to chase the investmentAn investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains... More that doubles in a matter of weeks or buy the stock that can deliver a 200% return in a few months or even in piling on cryptocurrencies.
And when things are not looking as good then quickly switch over to the financial security or asset that is moving up now.
While the excitement can be exhilarating, it is also very risky. Switching investments too often can lead to high costs and it takes just that one big loss to wipe you out. Investing through complicated structures can also fool you about the underlying asset risk that you face.
Ideally, just save more than you spend. Invest for the financial goals that you have. Invest in simple products that give you access to assets like equity and bonds. Be regular, be disciplined not to change and shift too often for reasons other than achieving your financial goal. In short, be boring with your money.
Also read:
-
Started Earning? How should you start investing?
Your first job, first pay cheque, your first spend with your own money, these are all milestones that we remember. The excitement around the first paycheque usually has to do with spending it. That’s a very big part of feeling accomplished and initiating your journey of financial independence and security.
-
How to achieve ‘growth’ in 2023
2023 has started on a cocktail note with mixed emotions and outcomes, both personal and professional. On the personal front, it’s been about accepting a grave illness impacting a loved one, all the while not feeling guilty about celebrating one’s own good health. On the professional front, it’s being able to embrace failure, while at the same time rejoicing the space created through 2022 for new endeavours.
-
Get Better With Money
Are you looking for clarity in managing your money? Do you want to be confident with your money? Are you looking to transform your money relationship?