Table of Contents
The fear of failure
Making money is not only for those who already have a big pile of money; instead, it is something that everyone should be able to do. When it comes to building wealth, nothing compares to investments. However, many people are sceptical about investing, and the reason behind this adverse attitude towards investment is – Fear!
We hold ourselves back from trying something new – like investing, due to fear of failure and loss. This fear of failure makes us procrastinate, or sometimes, give up altogether on the idea and prospect of investment. What most of us need to realise is that investment is not an option, it is a necessity.
A better future requires a bold decision today
Instead of holding yourself back from investing in ULIP, stocks, or mutual funds, why not let the fear drive you instead of consuming your potential. It is important to remember that financial freedom can only be enjoyed in the future if you start investing today. Hence, you should overcome your fears and take a step towards money making and build a better future.
Warren Buffett, the American entrepreneur, investor, and philanthropist is considered by many people as one of the most successful investors in the world, ever. He is known for his commitment to value investment and his humble personality, despite his immense wealth. He showed interest in business and finance since an early age, and that is how he has reached where he is now.
Protect your capital from inflation
Investments also come handy in protecting your wealth from inflation’s keen hold. Always keep in mind that your actual returns are equal to your investment returns minus the inflation rate and investing your money in a ULIP or funds are going to help you beat the ever-fluctuating inflation rates.
You are going to be financially secure only when you have a large reserve of cash at your disposal. So, if you are not economically stable yet, then it is time you start investing wisely.
Strategize and invest
Not all investments go in vain. What’s critical is that you strategise and plan your investments correctly and take calculated risks. Here are some key pointers to remember while planning your investment:
1. Talk to an investment expert
Have you decided to make the big decision of “investment”? Experience matters but that are not the only obstacle stopping you. Hire or consult an expert in the field who will be your guide in the initial years. The expert’s experience will prove beneficial in the long run.
You could potentially save time, money and avoid mistakes that might cost you by engaging with the right experts.
2. Read inspiring investment stories
The fear of failure can take a toll on you and potentially keep you from ever investing. Reading about inspirational success stories of investors can be instrumental in providing you with the necessary courage and drive to get going.
3. Always think long-term
Everybody wants a big pile of money, but it is not going to build itself if you are not going to invest. Only investments help you grow your money and create wealth. Also, you need to think long-term when investing. A five or seven-year term investment is not going to give you high returns. Therefore, you should consider investing in a ULIP rather than investing in stocks.
4. Plan for contingencies
You need to think about how would you provide financial help to your family if you unexpected circumstances such as losing a job or a medical emergency in the family hit you? Contingencies can come completely unannounced and create a ruckus in your life if you are not prepared. It would be wise to make yourself ready for any such situations.
Investments act as financial cushions for your bad days. They are your saviour during unpleasant situations. You should aim to keep aside at least six months’ worth of expenses for your family as an emergency fund.
5. Keep learning and getting better
There are only two kinds of people in the world: ones who’ve fallen and the ones who are going to. All of us make right and thought-out decisions that sometimes don’t turn out the way we expect them to. Don’t let a single wrong decision make you feel like you are a terrible investor and that this is not something you are meant to do. Your determination will decide how long you go in the game. If you experience losses, you are going to recover and earn returns as well; because you learn from your mistakes and keep improving.
If you are all geared up to start investing, get in touch with an expert, and consider investment options like ULIPs, funds and stocks.