A way out for financial uncertainties.
Does recession, economic slump or slowdown frighten you? They have the potential of destroying your wealth. This can be quite scary for your investment goals and your financial commitments. Cash crunch, inadequate capital and large debts are realties for those who don’t plan their investments. Investments provide a cushion and absorb the shock emanating from these adverse situations. Many individuals lose their jobs, income and wealth. They may not be able to meet their financial commitments and can default. Most of us would want to avoid this situation.
The question arises, how to plan these investments?
There are different asset classes, each catering to the different needs of the investors. One must evaluate and invest on the basis of his/her needs. To be financially independent, one must start investing early and use the power of compounding to your own advantage. Many don’t understand the power of compounding and run astray in the process of creating wealth. The longer you invest money, the more exponential would be your returns on investment because as you start earning on your investments, even the returns on those returns would start earning you money, eventually causing profits to pile up. As long as you are disciplined and set your earnings aside regularly, there’s nothing that can obstruct wealth creation.
Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Early investment planning also gives you a chance to take risk, make mistakes and learn. This will also help in developing financial discipline, an essential skill required for a better life standard. The early bird catches the worm, this saying matches correctly in the context of early investment planning. So take advantage of the opportunities available to you and catch the bull by its horn to reap benefits.
“With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future.” — Carlos Slim Helu
Keeping this in mind, take stock of your current situation and start investment planning if you have not started yet.
