There is a saying “Do not work for money let it work for you” by Robert Kiyoski. I cannot emphasis on this line more, we have a responsibility to fulfil our values and to earn enough to provide for our basic well being and to save some money for future use.I once read a quote from some superannuation managing fund , let your money work as hard as you are working , it completely makes sense.
We are suggesting some strategies and ways from where you can develop your plan ,
1. Reflection of your true self – The primary plan should include your own circumstances, responsibilities and your risk appetite. Your financial adviser may be able to help you in this.
2.Knowing your losses – The other focal point will developing a strategy is to know that there is a possibility for risk of capital.
3. Time Allocation – The amount of time you are ready to allocate in finding and exploring different sources. Its very important to understand that patience and consistency are not everybody’s cup of tea.
4.Diversification – The primary reason of diversification is to lower your expected losses if any, and to get a safety cushion around your money, diversification as told by Charlie Munger – Is a fool’s game , thus you should decide it on your own.
5. Rate of return – The other thing to look for while entering a market is its rate of return over the years, and its expected deviation from the figure over the years, the values should be studied carefully.
6.Your mindset – One of the most important thing is your mindset your values around the money, i cannot stress this enough your mindset can play a huge role in your investment decisions , try to go with unbiased mind.
7. Asset Allocation – Once you have given enough attention to points above, the next step is Asset allocation , amount of money you want to invest in different instruments shares , property , fixed interest and cash.