Skip to main content

Investment-Planning

Investment-Planning
Investment-Planning

Investment-Planning

Investment Planning is the process of identification of your financial goals and objective as well as achieving them through a solid plan. An investment plan should be strong enough to build up your future stronger. You can also say the investment plan is a layout plan for your bright future. Everybody wants to make good and successful investments so that they can become secure and wealthy. For attaining your achievement towards the best investment plan you need to consider some important factors as an investment decision is very wide and somewhat scary. If you couldn't able to put your money in the right place then it can be risky for your future, PLease find out the factors to be considered:

Know your current financial status

This is the base on which you will make the building of your dreams. It is the first step because until you are not aware of the truth of your financial status, you will not be able to make any successful investment plan. Making a plan is not a tough job but implementing the planning into a real benefit is a challenge. Financial status can be categorized by the below points :
  • Regular income sources
  • Variable income sources
  • Growth changes in your current employment
  • How much cash you are sitting on
  • How much debt you owed
  • Further debt requirements in short-run
  • Your financial responsibilities

Identification of financial goals and objectives

Identification of financial goals and objectives is the second important step while moving ahead to financial planning. Your goals for anything means the result you would like to achieve in a specified time limit and objectives are the actions that help you to achieve that goal. For instance: your financial goal can be to increase your return on investment to double or paying off your debts or buying a house while objectives can be the sources of income which helps you to achieve these goals like changing the job with salary increment or investment you made which can give you a good return to fulfill your goals.

Check your goals with available sources of funds

Checking your goals with available sources of funds is a very crucial step as it is the second step towards your dream goal. Suppose you have your goal to buy a house in 2 years then how much money you have right now and what growth prospects you see in carrier point of view and how much realistic your dream is. Compatibility between your goal and available sources of funds is very much required. Suppose you want to buy a bungalow in 2 years and you have only 5 lacks in your pocket then this dream is unrealistic according to the specified period of time. To make your investment planning successful you need to make realistic plans.

Risk-taking capability

Your risk-taking capacity means that how much risk you can take with your investment profile.
The more in risk your investment is, the better the chances of return, the more the investment is safe, lesser is the return. Here come many things like if you are a risk-taker, then you should go with equity or mutual fund investment and if you are a risk-averse person, then you can keep your investments in the traditional way like FDs, NSC funds or post office schemes, etc.

Go through all investment tools with their pros and cons

By going through all the avenues of investment, we should be able to decide what would be the best tool for us which satisfied all the above conditions.
Investment tools are financial and non- financial:
Financial tools are direct equity, mutual funds, bonds, FDs, NPA, etc.
Non-financial tools are real estate, gold, silver, etc.

Take the advice of a financial expert or any fund manager

The final step toward your financial planning is after deciding what you want to do with your money just take the help of any good expert to make you double sure that this is the best for you and it will bring the best to you.

Also, read https://bijimoney.blogspot.com/2020/06/confuse-between-investment-tools.html
Labels:

Comments

Post a Comment

I have started this blog to educate people regarding saving and investment of their hard-earned money wisely to become big, investing decisions play a very important role in our life to meet our retirement expenses and brighten our future.

facebook

Popular posts from this blog

Candlestick-Heart of Technical Analysis

Candlestick-Heart of Technical Analysis Candlestick-Heart of Technical Analysis Candlesticks are the horror story for most of us, believe me, there is not any rocket science into it. Earlier there were only lines and bar graphs to study about the stock but the b ar and line graphs are difficult to study in detail analysis and less appealing. Japan introduces the candlestick pattern and it's being used since the 18 century in Japan. That's why it is called  Japanese candlestick.  While the westerns have no idea about it, around 1980, a trader named steve Nison discovered candlesticks in the western part. Due to its perfection and completeness, it becomes popular everywhere but still, it is known as Japanese candlesticks. This is favorite for most of the traders and easy to understand by everyone. I called it the Heart of Technical Analysis because technical analysis is best with these candlesticks only and without the knowledge of these candlestick patterns, you would be unable...
7 comments
Read more

Do you know your investment !

Do you know your investment! Do you know your investment ! Investing is not only about money, but it is also about your emotions and hard work. If your investment is not fruitful and rewarding then you would not be motivated to do more hard work. A good and successful investment is like another earning member in your family who will take up your money, make your money work, and give you long-term returns. Investment is like buying today and consuming tomorrow, with an increase in quality and quantity. In other words, protecting our future and creating wealth. The purpose and meaning of investing can be different from person to person and profession to profession. Like the person earning 50k in a month, would be having a different investment objective, then the person earning 25k. Even their responsibilities would also play a vital role in investing, depending on their conditions, maybe the person earning 25 k is not having any major responsibilities while the person earns 50k ...
13 comments
Read more

Should you "buy what you Know"?

  Should you "buy what you know"? We all humans loves our comfert zones and as a defensive customer, we always want to go with the things we already know about and with the names familiar with. The same nature affect the investors portfolios while investing. In 1980 and 1990 this seems to be very common slogan that "buy what you know" but how much fruitful it is in today's uncertain market and time, we will try to understand it practically. Suppose you went London for vaccations and you reached there at morning, after check out you want to have breakfast but you don't have any idea about the places and where to get best food. You will ask the best place to visit for breakfast from localities or your cab driver. He leaves you the place where you may find so many restaurants and stalls for breakfast options. You got confused that what would be the best as per your taste and pocket,you started to analys that where most of the people are going and what is the fo...
5 comments
Read more