Ali Ata: Understanding Why You Invest an Why That’s Important
Why are you investing? Ali Ata says that while the question may sound cheesy, it’s something you need to answer before you begin your journey as an investor. Knowing the answer will help guide your investment decisions and may even play a part in your likelihood of achieving success.
Investing is no simple venture. You will be dedicating precious time and money to this endeavor, so it’s important to keep your bases covered as much as you can. Having a clear understanding of why you’re even setting out on the journey will help you decide what your first steps will be and how you will gauge your success.
1. Retirement
Once you reach an age when you can no longer work on a regular job, your investment could be your most reliable source of income. The good thing about investing for retirement is that you usually have plenty of time to do it and watch your money grow. Long-term investments, such as real estate, are often preferred for this purpose.
The secret to getting the most out of your investment when you’re doing it for retirement is to invest as early as you can. This will give you enough time to make and rectify your mistakes. The later you invest, the less room for error you have.
2. Short-term goals
Investment is a great source of passive income and can supplement the funds you obtain from your regular job. Maybe you’re looking to buy a house or a car in the next year or two—investing can help you achieve these goals. Reject the temptation to use your passive income for what seems like pressing, albeit unplanned, goals and focus on what you’re really saving up money for.
Knowing why you’re investing will help you stay focused on your endeavor’s success. It will help you make wiser decisions about where you invest and what you do with the returns you gain.
Investing is no simple venture. You will be dedicating precious time and money to this endeavor, so it’s important to keep your bases covered as much as you can. Having a clear understanding of why you’re even setting out on the journey will help you decide what your first steps will be and how you will gauge your success.
1. Retirement
Once you reach an age when you can no longer work on a regular job, your investment could be your most reliable source of income. The good thing about investing for retirement is that you usually have plenty of time to do it and watch your money grow. Long-term investments, such as real estate, are often preferred for this purpose.
The secret to getting the most out of your investment when you’re doing it for retirement is to invest as early as you can. This will give you enough time to make and rectify your mistakes. The later you invest, the less room for error you have.
2. Short-term goals
Investment is a great source of passive income and can supplement the funds you obtain from your regular job. Maybe you’re looking to buy a house or a car in the next year or two—investing can help you achieve these goals. Reject the temptation to use your passive income for what seems like pressing, albeit unplanned, goals and focus on what you’re really saving up money for.
Knowing why you’re investing will help you stay focused on your endeavor’s success. It will help you make wiser decisions about where you invest and what you do with the returns you gain.
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