Trip Alertz For Jetsetters, By Jetsetters
https://www.canva.com/ – Canva Pro
Most things in life require money, and now more than ever, we are faced with uncertain times and new challenges to overcome, which ultimately have affected our life goals. When it comes to mapping our life, we must take into account our finances. Wouldn’t it be great if we could put the money that we do have back to work for us? To create assets for the future, leaving us free to resume our life plans (once restrictions are lifted, of course) to do whatever we desire, from setting up a business to travelling the world.
If you want to start investing for the future, but not sure where to begin with your strategy, don’t panic, as we have prepared this short guide to provide you with some inspiration. We’ve comprised some ideas for both short- and long-term strategies depending on your lifestyle and what you would like your path to look like. Whether you want to become financially free, pay off some debts, or save for jetting off on your next adventure, we have you covered.
During unprecedented times, some might argue that it is the perfect opportunity to change direction. There may be no better time than now to work towards becoming a successful entrepreneur, business leader or investor, and finding ways to put your money to work for you. This might be to earn an additional income or to replace your existing career with investment opportunities that could potentially set you up for life.
Think About Your Personal Goals
Savvy investors think about their reasons for devising a strategy before taking the plunge to implement it. Although personal goals are the driving factor, finances play an integral part too, especially when breaking down what you want to achieve into monetary value. Consider these points below before deciding on your strategy.
- What financial commitments do you currently have?
If you are looking to invest your money or start a new business venture, you will need to know how much capital you have before you begin. It is important to take into account any existing financial commitments that you may have as you might need to pay these off before you can proceed with your investment strategy. Remember to include all essential bills in your plan as you will need enough money to cover these as well as having funds to tie up in investments.
- What are your short-term financial goals?
Perhaps you want to become debt-free? Or you may want to save a certain amount to invest or put down a deposit on a house. Whatever your short-term goals are, take the necessary steps to make them happen, for example, set up an ISA to reach your savings target, or cut back on current spending habits like swapping brands at the food store.
- What are your long-term financial goals?
Some goals might take slightly longer than others, depending on what they are and how you wish to achieve them. For many people, setting themselves up for a comfortable retirement is a long-term goal, perhaps for saving for their children’s first home. Regardless of your goals, you will need to remain focused, as investing your money over a long period of time is a big decision to make, although the rewards could be hugely beneficial.
Short-term Investment Strategy Ideas
When it comes to investment, short-term still refers to a substantial amount of time, as typically you will need between two and five years for your money to start making returns. A short-term investment strategy might be something as simple as setting up a savings account for future long-term investments. People often use savings accounts or ISAs to do this as you will earn interest on your money. This type of strategy is usually risk-free but be mindful as some accounts may charge you a fee to withdraw your money.
If you already have some money saved and want to use it to work for you and generate more money, then you will need to consider other types of investments that come with higher risks such as bonds or stocks and shares. Start small and do your research beforehand; it might even be worth hiring a financial advisor to look over your strategy and monitor your investments for you. With the use of smartphones and investment apps, we’re now able to ask for advice and trade easily from a few short clicks.
Long-term Investment Strategy Ideas
If you are someone who doesn’t mind playing the long game and it fits into your life plan, then you might want to look at property investment. You can use savings from your short-term investment strategy to secure lucrative assets that will work towards ensuring your long-term financial goals. Like any investment, conducting due diligence is the best way for you to assess the value of an asset and the risks involved before buying it. Many investors choose to have both short and long-term investment strategies run alongside each other to form their portfolio; this is because different markets will thrive at different times. For example, as we enter a recession, the stock market has dipped, but the property market, on the other hand, has flourished.
Property, if secured in the right location, can produce some extremely profitable returns. If you choose a buy to let investment, it will not only provide you with rental payments to top up your cash flow, but it will also generate capital appreciation in the long run, as house prices increase over time. There are a ton of useful guides available from property experts such as RWinvest, who often highlight the best places to invest in with the highest rental yields.
Like anything in life, if you are unsure, it is always worth seeking some professional advice before committing to anything, especially when it is something as big as investing your hard-earned cash.
