Most people invest in a sporadic style without considering goals, time and risk tolerance. There are also those who dare to pour out a large number of funds to invest without actually studying the market and risks.
Most people tend to see investment as an asset. There are also those who see it as a business or a source of income.
Furthermore, most people use it to realize their dreams. If you have a variety of financial goals, it is not impossible that investment can help you to make your dreams happen.
Check out the following four steps to realize your dreams with investment:
1. Find Out and Determine Your Dreams/ Goals
According to forbes.com, setting goals has been proven as an effective way to manage and measure your success. A dream or goal must be clearly determined long before you begin to prepare a strategy for achieving it.
You should be able to design what strategies are appropriate to implement your dreams. Choose the right type of investment and how long you can use the investment benefits to realize your dreams.
For example, if you want to be able to travel every year, choose the type of investment that has a period of approximately one year. Thus, you can use the investment benefits for traveling in the following year.
2. Balance a number of goals at once
Make sure that the goals set are realistic which can be achieved with the strategies that you design. For example, you plan to retire in the next 25 years.
How much money can you collect in the next 25 years? Is it enough for your retirement day?
On the other hand, if you have several other goals besides retirement funds, for example, buying a house within the next 10 years. Moreover, you want to have your own business in the next 5 years with an initial capital of Rp. 100 million. You have to think how much do you set aside each month from your income for the three goals above?
3. Consider the Term
Some dreams have a period of time as a reference while other dreams do not have a fixed period. However, it can depend on the money you need.
If you do not prepare anything at the age of 35 years and have plans to retire at the age of 50 years, you must be able to achieve 20% ROI (Return on Investment) or work longer or even withdraw from the amount of original savings that have been targeted.
4. Diligently Invest
If you only focus on saving money without using it for various productive interests, such as investing or doing business, the value of your money will be eroded slowly.
Conversely, if you use money for various productive interests that can add value to your assets such as investment or business, there will be a turnover of money. Thus, the value of your money is not eroded, such as eroded by inflation.
If you are diligent in investing, your money turnover can be more clearly defined and you can maximize profits.
You certainly need to learn risk tolerance and the overall way of working in investment. You can try investing in various investment instruments, whether it’s stocks, gold, or peer to peer lending (P2P Lending).
Read more: Short-Term Investment to Save Your Future