I am a bookworm and generally a curious human being, but there’s one kind of book and topic in my library that I do not like reading- finance. Maybe because I do not like numbers in general, moreover computations and mathematical problems. As you reach a certain age however, there comes a time wherein you begin to question your current situation, your career options, and most importantly your financial bearings. You become more conscious of your expenses and consider various investments- this is what happened to me. I said to myself, if I do not explore my opportunities now, when will I? I was planning on investing on a business, buying shares from the stock market, and being a partner to a future establishment- but then these were all just plans, and I have nothing to reinforce them with.
I started exploring the world of financial management by reading other people’s experience in a startup business. As i delved deeper, I noticed a pattern that can be used as guides in my journey to financial literacy. I’m taking baby steps as I open a new chapter of knowledge in my brain, and so far, these three rules create my basic guide to succeeding:
- Returns take time.
Investments are like wines in a cellar- they get better the longer they’re taken care of. There are chances and stories where one gets lucky by his/her investment and their capitals are returned in a short span of time. But you see, these are chances- and a good investment does not rely on chance, but on facts. Do not wait ten or twenty years before your retirement to start saving and investing. Just like wine, it will taste a whole lot better if you start early.
- New and advanced does not necessarily mean higher interests.
The finance market is filled with a lot of different personalities- varying from professionals to mere small time buyers. The market is wide and preferences differ and so in this regard, you should understand that there is no perfect formula in investing. The total return of investment or capital you’ve put cannot be doubled by simply upgrading your machine, revising your business strategy, or buying stocks from the new leading company. Finance does not work like that. It is not all the time that upgrades are a necessity.
- You can’t just leave it be.
Most of the stories I’ve read about successful investments have one thing in common: they treat their investments as their own child. It needs constant checking, caring and a lot of patience. Take advantage of today’s technology by trying to create ways to better monitor, expand and or understand the market you are trying to infiltrate. As mentioned earlier, investments take time to grow, but there are a lot of ways you can maximize the funds you have on hand.
You see, the world of finance and investments need not be difficult. It may sound complicated, but as long as you have patience and the right mindset, you can approach every single topic like a professional. Do not hold of your dreams because you are afraid of the risks, because experience will always be the best teacher.