Anyone who has ever set a goal for themselves knows how difficult it can be to achieve the goals they have set. Financial freedom is no exception. It may seem like the journey to achieving financial independence is a linear and short one, but in reality, it takes years of dedication and hard work. Thus, financial goal is set over a long term.
Financial experts agree that a traditional retirement age of 50 is unrealistic for many nations. This means that people will need to continue working well into their 60s or 70s in order to have a financially secure retirement. And when people are at an older age, they face even more challenges such as higher health care costs and increased expenses on everyday items such as groceries.
The journey to achieving financial freedom may not be easy but with proper planning and preparation, it can be done!
Start with a Goal to Achieve Financial Independence
Financial independence is a term that is used to describe the point where an individual has saved up enough money to live comfortably on their own.
It is usually the goal of many people to achieve financial independence; however, many have not been able to do so. This may be due in part because they have not been able to find a job or because they are living paycheck-to-paycheck. However, there are several ways in which one can achieve financial independence.
The Importance of Investing for Long-Term Wealth
Investing is a powerful tool that can help people in a variety of ways. Investing becomes even more important for long-term wealth because it’s the one thing that you don’t need to worry about.
Mutual funds are a type of investment that gives people the opportunity to invest in various stocks, bonds, and other securities all at once. They are often considered safer than some other types of investments because they diversify risk. This means that if one company doesn’t do well, for example, the mutual fund will not lose as much money as someone who invested only in that company would have.
If you are able, I wouldn’t suggest you to invest in mutual fund. Watch my previous video uploaded to Facebook below.
Investing in the Right Things Pays off Big-Time
To create wealth, the first step is to invest. But what is investment? Investment means that you have to spend some money and then wait for it to grow in value.
Investing in yourself is often a sound decision, the saying that “you have to spend money to make money” stands true even for investments. The first step of creating wealth is by knowing about investing – which includes understanding stocks and property.
Many people tends to start invest first before acquiring the right knowledge. This is the wrong way to start investment. The best investment is yourself. If you can learn by yourself over the internet, YouTube or any other medium, then that’s great.
However, I find it rather slow as I don’t have time to waste. Thus, usually I will just pay someone e.g. attend seminar, online course etc to shortcut my learning. To be honest, it pays as I didn’t make hefty mistakes!
Related – How to Become a Property Investor
Investment Strategies to Consider
It is important to develop an investment strategy considering all your financial goals, risk tolerance, and time frame.
There are many different types of investments that investors can choose from based off their risk tolerance and goal.
Investors should put their money into investments that they are knowledgeable about and have a long-term horizon for investing in order to avoid short-term risks with limited potential for return.
The basic strategy that you can adopt is to invest one asset class at a time. Investment requires a lot of focus, time and effort to make it work. Thus, never deviate your attention to too many investments at the same time.
Tips for Making the Most of your Investments
Stay focused on your strategies of investing. Be careful not to invest in areas that are not related to your industry.
Investing in emerging markets is one of the most common mistakes made by individuals. It is important to remember that these are very volatile and the risks involved are higher than those found within developed markets. That is true for stocks. For property, it is advisable to invest within the capital city. Find the property that you can afford.
It is important to decide where you want to invest before doing so. You should also consider how much time you might be willing to lose if your investment doesn’t go well, as well as how much money you’re comfortable with losing.
Conclusion
To accumulate wealth, it is important to start investing early and not to fear a downturn or a market crash. When you invest early, you have more time for your investments to grow. Even if you made mistakes, you will have time to recover from that.
If you invest a property value at RM100,000 at the age of 28, then your investment would grow to be worth about RM222,000 by the time that you’re 55 years old. If you invest that same amount at the age of 40, then your investment would only be worth about RM155,000 by the time that you are 55 years old. This is because when you invest earlier in life, more time is given for your investments to grow in value before they are needed.
When you are reading this and if you are age below 30, do consider to invest time to learn new knowledge and skills. Once you are knowledgeable and confident to invest, then do invest (any sound investment) as soon as possible.
Remember this, wealth building takes a long time to build.
