A question that I get a ton is – what is the best way to invest my money. Well I am here to tell you that there is no best investment.
Why? It comes down to the fact that we are all different people! We have different goals, different risk factors, and different styles. You honor your differences in other areas of your life and investing should be the same.
Instead of trying to find the best way to invest your money, work on what type of investing will work best for you. (text below the video)
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Here are some areas to consider when picking out the right investment.
- What risk level are you comfortable taking? You need to be able to sleep at night no matter what type of investment you are looking at, so make sure you understand where your line is. Come up with a percentage that you are comfortable losing.
- What is your available time to manage the investment? If you have no time to manage your investments, then you don’t need to be actively trading stocks. You need a more passive investments such as an index fund.
- What do you like! What interests you? If you hate real estate, then why are you even thinking about investing in it? Do what you love and you won’t mind spending time managing your investments.
- Can you achieve your goals with the investment that you are considering? If you only have risk tolerance for bonds, but have big goals, you need to figure out a different way to invest – or figure out how to eliminate the money fear so you can have a riskier investment. Your goals and investments must match.
- How much do you know about the investment you are looking at? If you know absolutely nothing, then you either need to learn about it or forget about it!
Now it is action time: Go answer these questions! Once you know what your style is, then and only then can you pick the best way to invest your money!