5 Investment Tips for Becoming Financially Secure

by Mike on June 18, 2013

become financially secure

The people who are most concerned about their financial futures are the ones who are looking for solid investment tips. Sometimes it is the most basic of investment concepts that can yield the best results. When you realize that investing does not need to be too complicated, that is when you will find the confidence to make the right moves.

1. Invest What You Have

When people get started in investing, they will sometimes risk their life savings or their kid’s college fund. Investing is not gambling. Investing is the calculated process of accumulating gains based on solid financial research. That is why you should only invest the cash that you can afford to invest. If you start taking risks with your investing, then you will find yourself in a deeper hole than you could have ever imagined.

2. Have a Plan investment

Some people consider putting money into an account a good investment. Depositing money into a savings account is not investing, however — it’s the random act of saving money. Investing is a planned process that uses several different investment tools to meet specific goals. You need to write down your financial goals and then develop an investment plan you will follow to be successful.

3. Know Your Fees

Mutual funds are popular investment vehicles for most people because of the variety these funds offer. But many investment experts tend to avoid some mutual funds because of the high fees associated with them. When you invest, make sure the company you are dealing with is transparent about everything including fees and charges. Spend some time on reading the fine print, Investment companies such as Ken Fisher Investments and other good financial services companies are open about everything. Ask questions and discuss with your investment company before signing on the dotted line.

4. Work in the Here and Now

Financially secure People can sometimes get too caught up in their own long-term goals when it comes to investing. The best way to reach a long-term goal is to set a series of short-term goals and follow those to success. It is much easier to build up a nest egg when you take one step at a time.

5. Review and Adjust

An important part of any good investment plan is flexibility. You may start your investment plans off by investing in foreign stocks because they offer significantly higher returns than domestic stocks. But as time goes by, your foreign securities may not do as well as you had hoped.

Each year, you need to sit down with your financial plan and evaluate its performance. Then you need to make adjustments, where necessary, to make sure that your plan is able to keep up with your goals. If you do not adjust your financial plan each year, then you run the risk of losing out on the latest financial innovation.

Financial security through investing requires hard work and planning. The important thing to remember is that your future financial success depends on how well you handle your investments right now. Take the time to seek out the best possible advice and take those small steps that will help you to find financial security and allow you to achieve all of your financial goals.

Resources:

http://www.investopedia.com/articles/younginvestors/08/generation-y.asp

10 Habits to Develop for Financial Stability and Success

http://www.bankrate.com/finance/investing/12-investing-tips-2012-1.aspx

 

About the Author

Shaun Chatman is a well published author on many authority sites. He lives in Dunedin, FL, and spends his free time playing with his kids or advising friends on tech, gadgets, finance and travel.

 

***Photos thanks to TracyO, 401K & Alex Osterwalder***

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