November 13, 2007

THREE USEFUL INVESTMENT TIPS

Investing is important to create and grow your personal wealth. This in turn could facilitate early retirement, fund your children’s tertiary education or fulfill your dreams, whatever they may be.
Here are three tips for wealth creation:

1. Set a Goal
   Clearly determine your purpose for creating wealth. You may utilize the services of a financial advisor, who will guide your goal setting exercise. Ask yourself the following questions:
   • What is my current financial position?
   • What wealth do I need to accumulate in order to satisfy my wealth creating purpose?
   • How am I going to create the wealth? What will be my investment strategy?
2. Pay Yourself First and Implement your Investment Strategy
   Make investing a part of your daily life. Money is already part of your daily life . You spend money daily on various items, then why not spend money on investment opportunities first. Set up automatic standing orders to facilitate your investing process. As a general rule you should try to save/invest at least 10% of your gross salary.
3. Stay on Schedule
   Be disciplined and consistent . Do not make ad-hoc revisions to your investment strategy due to short term market movements. Stay focused and committed to your goal and strategy , then watch your money grow.