Investment isn’t another world it is part of life and it is life in itself
When the student is ready, the teacher will be available. This is a good disposition to learning about investment. Yes – on investment, so much noise and so much confusion – where do one start from? Good question, every good endeavor must start with oneself. Go out and take stock of them all, great investors that I have known were all men of controlled temperament with mastery over their own emotion and personality.
Are they the best of fellow out there?
Absolutely not, but when they go investing they drill themselves to comply with the rule of the game – investment has rule and it is the ability to abide by this that makes you profits or losses. This therefore calls that one who wants to succeed in making investments would require tough discipline on himself; which is not common with ordinary folks out there.
Investment isn’t another world it is part of life and it is life in itself.
Whatever outcome you have from investment is only a reflection of your personality. Think of staying power, discipline, self-confidence, greed and emotion, they are traits which are more profound and important than investment strategies themselves. The man who masters himself will be able to master any other thing in nature which he put his mind to. Rule your world by firstly having rule over yourself.
Investment is not an anointed area for a few personalities – I believe the market respects no single person. True investment market cannot be manipulated or controlled by one man – but like the ocean as large as it is, each and everyone can have a part to him. The bottom line is that if you can discipline your emotion, you can have a part of the wild world of investment to yourself; and nobody is expected to have all. When one man has it all, it is no longer an investment, it becomes a monopoly.
This implies that those who are making progress are those who abide by the needed rule of the game through controlled temperament. The hardest thing for man to do is to subdue his own self. I have seen people who failed in one thing, what you see them do next without taking stock is rush out to find another venture until they have gone round and round doing so many things. Often their failure is not as a result of the non-yielding of the ventures they tried, the problem usually lies in their poor personality that refuse to learn what it takes.
Failure in life is often as a result of a failed personality. In investment, you will likewise not be spared the rod for negligence of personality. Sit up, find out where you have failed and objectively identify and take care of such. Ability to learn from failure is one good trait of the successful ones.
You don’t need to perfect your personality before making a venture into investment? Personality is perfected in growth; perfection is growth, and there is no other definition. And it is in doing that you get perfected.
Remember that the law of recognition comes before possession. It is easy to deal with an enemy you know than those you don’t know. Be aware of your personal tendency – such as being fearful, greedy and impatient. Often in your investment decision, this three personality trait will play crucial roles in what decision you make, but by recognition and discipline, couple with experience and time, you will learn to master them for profit.
Find out whether you are overly dependent on others for decision or not.
Finally, put it firmly in your mind that the winning investors are those who take charge, they are people with good self-esteem; they are positive and confident personalities. Lack of confidence leads to the death of investment, meaning that the life wire of profitable investment is confidence; and you should not be found in the market when your confidence is down. Take charge and you will be writing your name on the winning side.
Investment Guidance that will help you to Manage your Money and make it bigger
If you are one of those who are new in managing a huge amount of money and are having troubles on how to make an investment, you do not have to be bothered. You are not alone on that battle and if you would follow a reliable investment guidance there is definitely no reason for you to lose everything that you have worked hard for.
This investment guidance will help you on how to manage your money and make it bigger.
In making an investment, you have to make sure that you plan everything very carefully. Think about what you want to invest your money on, how much money you would like to earn and the timeframes on when you would like to make that amount of money. If you do not know yet on how you would be able to organize these things on your thoughts, using an investment growth calculator from investment guidance websites may be helpful for you or you can also seek the help of reliable investment advisors.
After carefully planning on what investment you would like to make, you have to take action. Start your investment. If you are not yet quite confident on how investments work, you do not have to worry because there are actually a lot of business establishments that earn by providing credible investment guidance to new investors.
You can simply go to their office and choose the best investment advisor that you can hire to give you effective investment guidance. To make sure that the investment advisor you hire will definitely do his job effectively and not just give you some lousy talks on making an investment; you have to pay him accordingly. Do not pay an investment advisor on an hourly or fixed rate basis. Pay him according to the amount of money that he makes you earn by giving you effective investment guidance. The most effective investment advisors are those that are paid on a commission based rate. You pay them a percentage of the total earning that you make on an investment that they have helped you with. This way, you are sure that your investment advisor is really helping you earn money because it would also make him earn more.
If your first investment is successful and you have earned enough from it, you do not just end it there. You have to decide what you would like to do with the money you earned. If you want to make your money bigger, you have to make a new investment. You can get ideas on what kind of businesses can make you earn more on some investment guidance websites if you and your investment advisor cannot think of any that would best work for you.
You can also invest your money on things that would secure your future like getting a health and life insurances for you and your family, securing an educational plan for your children and the likes. By following reliable and effective investment guidance, you are able to secure your earnings and your future.
Looking for the Best Financial Planner
The process of finding the right financial planner who will meet your needs can be confusing for some people. You may feel like you don’t have enough money to even think about seeking help, but don’t be discouraged. Even if you’re just starting out and want to gather information on how to secure and build your future financially, making contact with a certified financial planner is a step in the right direction. Here are some pointers in choosing one:
* Remember your goal-find someone you can trust and who listens to and understands your financial goals.
* Where to look. Some own their own businesses, while others may work in a large practice. Also, some commercial banks or investments firms have financial planners on staff.
* Word of Mouth. One of the best ways to find a trusted planner is through family and friends.
* Check credentials. Many professionals in the field use the term financial planner. Make sure the person you find is really qualified for the job. Here are some designations they may have, depending on their training:
o CFP – Certified Financial Planner
o CPA-PFS – Personal Financial Specialist
o ChFC – Chartered Financial Consultant
Financial planners should receive extensive training and pass tests to be accredited by a recognized program. Some specialize in areas such as investments, taxes, insurance, or retirement.
* Check experience. Find out how long they’ve been working. Look for one that has a good amount of experience.
* Ask about fees. You definitely need to know how they’re paid. Some are hourly, while others charge a fee based on a percentage of what is managed. Initial consultations are typically free.
* Note their communication style. Is this someone you can work with and understand? Find someone you are comfortable with and can ask questions. Make sure they understand your tolerance for risk and will make decisions based on it.
How to Calculate the Future Value of an Investment?
When we decided to save, the next step is to learn to invest our money. Knowing how they behave different investment instruments over time will support us to make that money work efficiently increase our wealth, we project the amount in the future by investing with a specific interest rate will support us in the decision on the best investment tool to achieve our plans.
Knowing the amount of money that we save to retire with enough capital at the end of our working lives to accumulate money for a down payment on a mortgage or car, calculate the final amount will pay for a credit and any other utility that mean know the value you will have our money in a period of time, are some utilities to know how to calculate the value of an investment in the future.
How can we calculate the future value of a quantity?
To quantify the final amount by a certain date we must know the following information:
M = Amount to invest
It is the amount we invest to achieve our goal.
i = interest per period we will invest
It refers to the collection or payment of interest that apply to our credit or investment in a period of time.
N = number of periods that will be the amount invested.
Our investments or loans will be made for certain periods: monthly, annual or otherwise, where the interest rate applied.
After learning this information and applying the following formula we can calculate the future amount to obtain an initial investment:
Formula to calculate the future value of an amount:
VF = M (1 + i) ^ n
Where:
FV = Future Value
M = Amount to invest
i = Interest
N = Number of periods
Applying this formula, the following fictitious values, would be resolved as follows:
Fictitious Values
M = 10,000
i = 10%
n = 1 year
Substituting:
Future Value = 10.000 (1 + .10) 1
= 10.000 (1.10) 1
= 10,000 (1.10)
VF = 11.000
The final value after investing 10,000 pesos for a year at an interest rate of 10% is 11,000 pesos.
To calculate the next period, the result will give the same application:
Second period:
Future Value = 11.000 (1 + .10) 1
= 11.000 (1.10) 1
= 11,000 (1.10)
VF = 12.100
And subsequently, we can perform the same operation until the number of periods we need.
If we apply the exponential function of a calculator, this operation can be performed more quickly and to a greater number of periods.
The aim of this article is to introduce you to the knowledge of one of the tools most important financial calculations that will help us properly design any economic objective over time. Seeing it put you in the right way to analyze your investments and make sound decisions about your investments and productivity adequately plan for your money. We invite you to consult an expert or directly into one of the many titles of books dedicated to teaching the fundamentals of financial management.
