Blogask about money

Nowadays, it’s not hard to find new opinions about how you should be investing in anything you want. But to begin with, you need to know a total sum of your income, expenses, liabilities, and savings. Of course, you may remember all these things vaguely, but it is not enough. You should be absolutely clear about them. And be sure, surveyh.com will be very helpful for you.

How to Determine Whether Becoming an Investor Is the Right Choice for You?

What to consider before you invest? At first, be completely resolved to become a full-time investor is great. But for those who are teetering on the edge of indecision, how does one make that leap of faith need to have a good guide. Or the person who has already an experience in full time investing.

Keep in mind, making a career in real estate investing is not a good job for the faint of heart people. It is because of the fact that this job requires a well-trained dedication and the ability to withstand the load. It is necessary for being your own CEO and making important decisions.

Moreover, you should not invest in something you don’t understand. That is why you should be sure that everything is clear before you make an investment.  We would like to pay your attention that making even small investments into your personal medical care without insurance is always a good idea, especially, living in pandemic times.

And of course, read these 8 questions for investors to ask before investing. It will help you to understand whether or not you’re ready to become a full-time investor.

1. Do I Understand How Does The Investment Work?

There is the wise thought how to understand that you definitely know something. If you know something well, you can explain it to someone else.

So, if you don’t understand how it works, you shouldn’t invest in it. First of all, you should be explained all the details of your investment. Next, you have to look through the investment plan and get acquainted with all the future risks.

And only after you were told about all the odds and ends of this deal you may invest your hard-earned money.

2. What Are My Goals?

Do I want to get safety, income or growth from this investment? Or am I looking for something else?

If you don’t clearly spell out various goals and do not ask about the money you would require you are unlikely to achieve them. It is obvious, as a forgotten goal have an unpredictable impact on the investment program. Similarly, it makes it difficult to get the investment horizon and instruments right.

3. How Much Do I Expect To Earn On This Investment?

Prior to investing determine whether the sum of money is realistic or not. It is one of the main reasons why new investors lose their money. They chase after unrealistic rates of return on their investments. But very often it is a worthless business.

So, good advice would be to keep your expectation reasonable. There are even some takeaway lessons. For example, if you’re a new investor and you expect to earn 15% or 20% compounded on your investments over decades, you are expecting too much. Naturally, it’s not going to happen.

Of course, that sounds harsh for you. But it’s true and important to understand a simple algorithm: Anyone who promises returns like that is taking advantage of your greed and lack of experience. So, be patient and ready to wait for a long time until you get any returns.

4. What Are The Risks Of This Investment?

When you invest, you’re definitely exposed to different types of risk. But not every lack of experience investor knows how these risks can affect his investment returns. And because of that, it will be good for you to review your existing investments. Finding out all the hidden traps will save your money in the long run.

And of course, as it was written above, one should be aware of all the risks which can affect your investment. Just stay alone with yourself and try to find more questions to ask before investing in a business. Are you comfortable taking these risks?

5. How Long Do You Plan To Invest?

Warren Buffet had said, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

Nowadays, with all of this information flying around, it’s tempting to make a lot of short-term investment decisions. Most of them are based on what you think is a newer or better for the modern world.

But unfortunately, it does not work in an investment business. Moreover, you need to know that almost 80% of those short-term investments fail after some time. So, do not rush to invest in unstable organizations. It may play a bad joke with you.

6. When And Why Will I Sell This Investment?

Before investing in something, you should have a pretty good idea of when you are going to sell it. In most cases, if you bought a stock expecting 20 percent revenue growth per year, you must be also planning to sell it if the revenue doesn’t meet your expectations.

On the other hand, those who buy a stock because of the dividend yield should decide what to do if it falls? Answer on these questions and be sure, it will facilitate you in solving this problem.

7. Do I Have Special Knowledge In This Business?

Do you agree that ordinary people have a huge advantage over investment professionals? This fact concerns the professional work fields which are very unpredictable. The deep understanding is much valuable than scientific knowledge. Also, any investment professionals do not know more about this than someone who works in it.

So, try to ask yourself, “Am I investing in the business I know something about, or am I investing in something that two college professors at Yale know something about?

And bear in mind, not confident in their skills people should ask the expert’s opinion. It will save your time and money.

8. Am I Ready To Invest Right Now?

It is the last but not the least important investment question everyone should ask before making an investment. Just listen to your inner voice, and decide what is better for you. Good luck!