How to Invest For Future Planning-Beginner investors tend to make a lot of mistakes that result in huge losses. Many new investors ask questions like how can I double my money in one year? What investment doubles in six months? And this is exactly the problem. Any good investment takes years to manifest and bring huge returns.
So many businessmen have their minds set on hitting a particular income target and making investments, then sitting back to enjoy returns as soon as possible and this will likely result in failure. How can you invest your money wisely?
This article will explain what the types of investments are and how you can start investments as a beginner. It will also explain how to invest for future planning as a beginner. If you have been looking for how to invest safely as a beginner, or have been asking questions like “how can I invest for future needs?” “What is best plan for the future?
“What is investment planning?” “How can I create a solid investment plan?” this article will be of great use in helping you acquire the knowledge to start making safe investments for future planning.
Firstly, you need to understand that to make a good investment, you need a solid investment plan. Your investment plan will include possible risks and carry all possible happenstances. This will ensure that you are not stranded at any point.
To draft a great investment plan, you can ask any successful investor or check online for sample investment plans. I will proceed to explain every important fact you need to know about making any investment.
What Is An Investment?
An investment can be classified as a lot of things. In simple words, investment is the act of dedicating valuables or assets to gain a profit over some amount of time. Most investments require more than just assets, and the investors have to spend time and efforts too to realize their profit.
An investment involves a reasonable amount of risk, and it is very unwise to invest all life savings in one investment program.
Why Should You Invest?
In any business, the “why” is one of the most important things and it often gets ignored. Why are you investing? There can be several reasons why you want invest your money. If you are already rich, then you may be investing to keep your wealth safe for the future. If you have a reasonable amount of money and you are looking to grow it, then you are investing for profits. And you can be investing for a whole lot of other reasons, like a contract thing or something.
If I am an investor, to grow my money in a year, the best way is to invest in start-ups. There are many start-ups, and you will be making a huge mistake if you choose the wrong one. I will start by explaining how to select a proper start-up to invest in. This is for new investors who wish to invest money for growth.
How To Invest For Future Planning
- Invest in Startups
- Invest in properties
- Invest in the stock market
How To Invest In Start-ups As A New Investor
The most important part of investing in start-ups is selecting the start-up you wish to invest in. Making a mistake can either leave your money with scammers or make you lose all your investment. Here are the top things to check when trying to invest in a start-up.
How To Find A Good Start-up For Investment
The first step is to check the quality of the services that the start-up provides. This is because the success of the start-up determines your profit.
- Quality of the start-up
- Rate of development
- Number of users (If applicable)
- Social platforms
Keep in mind that the success of that company is what determines if your investment is safe and will bring huge returns. This will help you select the best start-up in your own interest.
Quality of the start-up
The quality of the start-up should be determined from your conversation with the start-up founders. What is their plan? What is the problem they wish to solve? Note that if they are just doing what is already available for the people, it is likely that the project is not going to be a great one.
Let’s assume that it is a fintech start up. There are so many fintech companies already. Is this start up trying to replicate what is already available? Or are they trying to solve a problem?
If they are trying to solve a major problem, check their solution and see if it will work perfectly for everyone. If it works, then you may start considering and move on to the next stage.
Rate of development
This step includes checking how far the project has gone. Still using the fintech company as an example, have they fully developed the mobile application?
If they have, ask to see it and check the responsiveness of the app. Test run it and see if the UX is great (User experience).
You can try carrying out transactions and see if there is a good customer care response. Check every single thing from the spellings to anything.
Number of users (If applicable)
Try not to invest in a start up that has not even started anything. Remember that you are a new investor. An experienced investor may choose to invest in a start up that has not even started developing anything. This should not be done by someone who is new to investments.
Check if they already have some users, and your money will be used for marketing instead. For example, if the fintech company already has a thousand users and is building trust already, it may be a wise option to consider them. This is because all they need is to increase the number of users they have.
This includes checking how good the product is presented to members of the public. From the logo to the flyers and social handles and banners. Check if everything is good enough. How the brand looks is very important for growth.
You can also check the stability of the founders. Have they been consistent since the beginning of the project? The good thing about making investments is that the founders do most of the work. Only your money and time is needed.
Check the user reviews if they already have any users. From your perspective, everything might look great, but the truth is whatever the users see. If there is a particular section they have problems with, especially if it is mentioned by more than one person, it must be solved as soon as possible. The best start up to invest in if you are a new investor is a start-up that has completed the product and launched it but need more users, something that your money could help them with.
Invest In Properties
You may have heard of the saying among property investors that properties hardly ever depreciate. This means that you are completely safe when acquiring properties. However, the most important thing here is why you are in properties.
If you are investing to keep your money safe and if possible, some growth, the type of properties you need to purchase are different. If you are completely looking to invest in properties for profits, then the type of properties you should acquire are different.
Factually, purchasing properties is one of the few investments that will double you money in five or more years. If you will need the money in two years, you should not invest in it especially if you want the profits. Investing in properties is a long term thing.
Now let’s consider what type of properties to buy, depending on your motive.
If you are investing to keep your money safe, you can purchase almost any type of property, but it is better to purchase them in developed areas, since you just need to keep your money safe.
If you are acquiring properties for profits, purchase properties in areas that are not fully developed but are sure to be a good hit in five years or so. That way, a property purchased for 350,000 USD can be flipped for 1.5 million USD later.
Invest In The Stock Market
The last way to invest for future planning is to invest in the stock market. There is a whole lot to understand about the stock business, so if you want to invest in the stock market as a beginner, consider buying stocks from online stockbrokers.
Investors in this sector are known to make a lot of money even in short periods.
To invest for future planning and secure your future, you just need to consider some of the investment sectors that are great for the future. Making investments that require you to put a lot of money for a quick return is different from making investments that do not take much of your time along the line. This post talks about how to invest for future planning and types of investments you can make, using examples.