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Feb 19

8 Ways Investment Has Been Involved in Financial Success Stories

Posted by abiao at 13:21 | Default | Comments(0) | Reads(1511)

You don’t achieve success in a day.It is essential to learn the techniques and practices of the financial world to fully understand how to make money work for you. Patience, dedication, and determination would also be needed. A lot of it would also involve trial and error, particularly in the field of business and investment. Let’s take a look at some true-to-life stories of how sound investments brought success to otherwise regular individuals:

1. Setting goals.
Whether you start young or old, you can decide to start investing. However, you need to prepare yourself because it will take you on a long journey.
A good example for success story is that of research chemist Neil McCarthy, 73, who now has a net worth of about USD 2.1 million. He started investing in the stock market when he was 34 years of age, back in the 1970s. Age, time, gender and occupation isn’t a hindrance in investing, it’s about your personal goals. This will involve your money resources, your determination, and the idea of what you want to achieve in the future. Whatever your situation, the thing you need the most is a solid plan, your blueprint, to meeting your investment goals. This will help you throughout the trip to financial success.

2. Getting started.
After determining your aims, you can now take the next step: choosing what type of investment you want. If you have a fixed deposit account where you put in your savings, this can be your basis on what type of investment to choose—bonds, mutual funds, and stocks for instance; as well as other alternative investments like Futures, FOREX, Gold, Options, Real Estate, etc. Having a fixed deposit account is one way to invest in your future.

3. Find ways to teach yourself about investment.
It is important to acquire relevant knowledge about investing. It helps to read books, research online, or enrol yourself in an investment course. You can pick up tips and gain substantial information of what and what not to do, plustechniques from experienced investors on how to excel in different forms of investment.
As with many of life’s endeavours, you first need to learn the rules by heart before you can bend or break them to your advantage.Think of investment as a combination of science (financial fundamentals) and art (qualitative factors). There are still ways which can help you comprehend it clearlyand without difficulty. Textbooks like "Stocks for the Long Run" by Jeremy Siegel can explain high-level finance ideas in an easy-to-understand language.
Recommended also are articles by American business entrepreneur, investor, and philanthropistWarren Buffett, considered the most successful investor of the 20th century. Consistently ranked among the wealthiest people of the world, the"Oracle of Omaha” is known for his devotion to the value investing philosophy. His way of achieving success can be yours too. That’s why it’s good to read about how famous investors were able to triumph.

4. Knowing your personal investment behaviour.
Knowing yourself can help you identify the traits that can support or prevent you from investing successfully. There are certain traits from ourselves that may hinder or push us tow manage them accordingly.
There is a behavioural model developed by Bailard, Biehl, and Kaiser (BB&K) that could aid investors in understanding themselves better. It categorises investors into two personality characteristics: the first is by theirmethod of action, where the investor is characterised as careful or impetuous; the second is by theirlevel of confidence, which could either fall under anxious or confident. This BB&K model also divides the investors into five groups:
•  The Adventurer type of investment personality holds strong entrepreneurial characteristics. They also include thosewho as well as strong-willed and volatile
•  The Celebrity type characterise those who follow the latest investment fads.
•  Those with highly risk-averse and wealth-preserver personality is the Guardian.
•  Investors with the Individualistpersonality type is careful and confident, and often takes a "do-it-yourself" approach.
•  People who possess all of the above characteristics is categorised as aStraight Arrow.
The Individualist type is said to be the most likely to succeed but whichever type you fall under, you need to learn to develop a strategy that works well with your investment personality. It is also important to learn to make the most out of your core assets.

5.Finding people who can help you through your financial journey.
Beware of people who might fool you into investing on fraud investments. You might also encounter deceitful investment professionals whose goals may conflict with yours.
Savvy investor couple Jeff and Helen Brown from Indianapolis have earned several million dollars on their investments.  Jeff and Helen usually stick to mutual funds, but with the help of financial planner Susan Elser who helped them on how to properly handle their funds, the couple were able to grow their wealth and succeed in their investments.

6. Careful strategy planning.
It is the careful planning of strategies that has brought success to many wealthy investors.
•  Put all of your eggs in one basket, but watch your basket carefully.
•  Don't put all of your eggs in one basket. In other words, diversify.
•  Combine both of these strategies by making tactical bets on a core passive portfolio.
Find what suits your goals and what will fit to your personality.

7. Being disciplined in all aspects of finance.
It is better to know how to be disciplined when you’re into investing. Your chances of success willincrease if you stay the course. Just like what the Browns did. Being a well-organised corporate lawyer, Jeff Brown spent about 30 hours a month to track their family’s assets, debts, and investments on Excel spreadsheets.

8. Willingness to learn and try even if mistakes happen.
Just like what mentioned from the first item, you have to prepare yourself because before you can attain financial success, you will be first embarking on a long financial journey that includes obstacles that will test your patience and will. If you made mistakes, acknowledge that and learn from those.
You will definitely face many challenges when you’re seeking to venture into investment. The mentioned points can definitely serve as an inspiration for you to tread on the right path to financial success.

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