You don't have to be a genius to achieve your investment goals



Quick Summary
You don't need to be a financial genius to achieve your investment goals. By adopting a disciplined approach, focusing on long-term strategies, and controlling what you can, anyone can build wealth. This article outlines 12 key principles, from developing a financial plan and saving consistently to managing risk and maintaining emotional control, to help you succeed.

You don't have to be a genius to achieve your investment goals. But if you're a knowledgeable, disciplined, and confident yet humble investor, you'll end up looking like one.

Follow these 12 Principles and you're set for life with regards to your investments.

1. Develop a financial plan

Identify your goals and design an investment program to reach them. Be conservative in your projections.

Achieve Investment Goals: 12 Simple Principles

2. Become a disciplined saver 

Learn to live below your means. Make it a habit to put away money every month. If you aren't naturally disposed toward saving money, find ways to trick yourself, such as automating your savings program.

3. Start early and continue

Continue investing in both good and bad times.

4. Focus on your Net-worth

How much of the net-worth is liquid? Return on net-worth is more important than return on investment.

 

5. Control costs

Avoid instruments with a high expense ratio.

6. Manage risk

Create a portfolio that will enable you to sleep peacefully at night.

7. Be a buy-and-hold investor

Constant trading will not take you to the dreamland. You cannot sow something today and reap tomorrow. A seed has to go through different seasons before it turns into a fully grown tree and starts bearing fruits.

8. Avoid fads and can't miss opportunities

Be unemotional while investing. Protect your capital. A single mistake is enough to ruin everything. Products are the last thing while investing. Follow the process.

9. Focus on what you can control

You cannot control the world outside such as constant news, etc. Purposefully ignore it. You can control your income, savings, and expenses. Simple!

 

10. Maintain equanimity

Keep emotions under control. Don't get swayed away. Uncertainty is life- embrace it.

11. Review investments

Frequently (say once a year) review your investments. Make sure your goals are aligned with your investment and cashflows.

12. Define enough

Know when you have enough money to meet your goals. You will be content, and more importantly, far less likely to reach for more and take unnecessary risks.

The author is Founder and Catalyst at Aaditya Chhajed Financial Services and can be reached at aadityachhajed@acfas.in


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About the Author

Financial Investments

Our amazing capacity to do good for people who trust us (and for their heirs), and our ability to integrate investments into a total financial plan, these are the essence of the wonderful profession weve chosen. And perhaps the most important thing is: youll never have to worry anymore about your investments. - ... Read more

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