Looking to get rich next year? Unfortunately nobody becomes rich overnight.
Those “overnight successes” we see are normally the results of years and years of hard and deliberate work. The good news is that when it comes to building wealth there are no secrets.The same set of principles will work for absolutely everyone! If you’re willing to put in the work and make the sacrifices one fine day you can be sure of making your dream come true.
Would like to share few Tips or Suggestions to become rich not overnight but over years.
Look Beyond A Companies Financials
Before buying stock it’s wise to do as much research as possible. It is always desirable to look at the company’s balance sheet and financial statements. But go beyond these and search far and wide for information on a company. Look at the opinion of its stakeholders such as customers, suppliers, employees and competitors. This is Fisher’s scuttlebutt strategy for investing. You want to invest in companies that are going to stay strong for the long run. You’d be surprised what you can find out by simply seeking the opinions of others.
Invest In Gold ETFs
Investments in Gold ETFs provides returns matching direct investments in gold, without the hassles of taking physical delivery of Gold. You can purchase Gold ETFs through ETF Mutual Funds. The Gold ETF is traded in Stock Exchanges just like shares. It is a unique way of accumulating Gold for future needs. You can sell it in cash and convert into physical gold. If you want to invest in Gold without holding onto its Gold ETFs are a perfect fit.
Invest Through SIP (Systematic Investment Plan)
To stay on track with your investment goals you need to continually add money to your investments. An easy way to do this is investing through a SIP. SIP is similar to a Recurring Deposit. You can put small amounts in SIP (Systematic Investment Plan) every month. On a specified date the amount will get invested in mutual fund schemes or shares of your choice. Investment through SIP is a unique way of accumulating shares without waiting for market timings. A SIP is a disciplined approach towards savings and investments. This helps you inculcate the habit of saving and building wealth for the future.
Include Fixed Income Securities in Your Portfolio
If you’re a conservative investor or are saving for a short term purchase you might want to include fixed income securities in your portfolio. Fixed-income securities such as bonds or, fixed deposits pay you a fixed rate of return. The interest on these may be paid periodically. As they provide an assured return on due dates as per schedule, you can plan your cash inflows for meeting some regular expenses. Debt Mutual Funds are also perfect fit to add Fixed Income schemes.
Invest In What You Know
Buy stocks in businesses that you understand. You should be familiar with the sector and the company. Phillip Fisher, a great investor, tells us buying a company without having sufficient knowledge of it may be dangerous. Do some homework and research before investing. If you feel that the stock is available at huge discount and wanted to capitalise you can take a small tracking position and once you get grip of the company and its fundamentals then you can invest more. As a rule of thumb don’t invest in the unknown. Educate yourself on all of your investments.
Happy Investing!
R♥Vi
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