The Buyt Desk
If you want to be a successful investor then apart from consistency you must be ready to watch and learn. We always want to earn more from our money. This is possible only when you follow an investment plan. The plan will vary for each individual. It will require changes if circumstances change. But do have a plan and act on it. Nobody is perfect and that is why it is necessary to learn from your own and others mistake and be on your toes to rectify them.
Here are 6 habits that you should inculcate to become a successful investor –
1)Good Things come in small packages
Don’t wait for a saving a big amount to start investing. Whatever small savings you make you should start investing it immediately. What matters is not the size of the investment amount but how soon can you start investing.
2) Be Patient
When you start your investment you can’t be checking the return daily. You must invest consistently for a long period and stay put. If you check your return daily it will make you nervous and you may take a wrong decision on impulse.
3)Have a Plan
Always set a goal and invest accordingly. You should always have the answer to the question of why you are investing? Whether you want to buy a house in another 5 years or planning to take uo higher studies. Have your goal in mind and invest as per the time available to you.
4) Do not Copy
Just Because it worked for your friend it may not work fork for you. Avoid getting distracted by seeing your friend or your friend’s friend return. Each individual has their own goals, money and time. Two people can never be the same and similarly, two financial strategies of two separate individuals can never be identical.
5) Risk Appetite
Before you start investing you must evaluate your risk. One can understand this by asking few questions to oneself. When do you want your money back? Will you need this money in the short run or the long run. If you want the money back in a short period of 3 years, you can invest in fixed deposits and recurring deposits or short term liquid funds. On the other hand, if your target is 5 years, then index-linked mutual funds and equity mutual fund asr good options.
Hope these five habits helps in becoming a wealthier you.
