5 Rules You Must Follow If You Want To Make Smart Investments in 2015

 Investing your money to generate more income is a sure way to achieve financial security. The job market today is very uncertain; if you lose your job and …

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 Investing your money to generate more income is a sure way to achieve financial security.

The job market today is very uncertain; if you lose your job and you have no other source of income, every aspect of your life will start to go wrong. It is therefore crucial to invest any surplus income that you have so that if you lose your job or when you retire, you will live a comfortable life.

It can be difficult for you to start investing if you have debt obligations. At the beginning of 2015, you probably resolved to get rid of your debts and start making smart investments. If you have not yet realized that resolution and are still struggling with your debts, enlist the help of national debt relief and you will experience some flexibility in your income.

Once you have your debts taken care of, you will find it easier to invest. To invest smart in 2015, follow the guidelines below:

1.   Consult the right financial advisor

You will lose your money if you consult the wrong people. If you want to invest in the property market, the best person to talk to is a professional with a good record of successful property investments.

Go for an advisor who is open and frank about the kinds of obligations and risks that come with each investment opportunity you undertake.

If you engage an investment advisor, make sure their payment is subject to your investment making you money. That means, if you make money, they make money. If you don’t, they don’t get to charge you.

Avoid taking advice from family members or friends as you are likely to make emotional decisions.

2.   Choose the right investment strategy for you

Don’t go into your investment blindly. Know the amount you want to invest and be clear on when you want to start benefiting from your investment.

If you choose an investment strategy that gives returns in the long term but you wanted returns in a couple of months, you will be forced to terminate the investment and could lose a significant amount in the process.    

3.   Diversify

Do not invest all your money in one option only. If you invest too much in one sector and that sector experiences a slow-down, you will be risking all your money.

A good example is what happened in 2008. Anyone who had all their money in real estate lost a lot.

4.   Educate yourself

It is well and good to have a financial advisor, but you will be at an advantage if you understand investment matters.

Understand factors such as:

·         The laws of demand and supply.

·         The different factors that affect investments such as stocks, commodities and bonds.

·         When to buy and when to pull out of investments. 

5.   Keep your focus

Stay focused on your goals. If you are halfhearted about your investment choices, you will make mistakes. Your aim is to make more money so that you stop relying on debts. Keep at your goal and your investments will be fruitful.

If you stick to the above basic rules, your investments in 2015 are going to give you good returns. 

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