One of the earliest pieces of financial advice that many people receive is to find ways of making their money grow. And investing is the most popular way for that to happen. Many people spend much of their adult lives looking for the perfect investment vehicle, whether that means stocks, bonds, real estate, a buddy’s restaurant, or anything else that might need to be funded. The quest to find that single investment, or a group of them, which can change someone’s fortunes, either overnight or for the long haul, is one that most people undertake at one point or another in their lives, and some never really stop questing.
It can be so easy to get caught up in deciding what investments to choose, that you might neglect to put much consideration into when you should make the investment. Yet the timing of an investment can hold even more important than the nature of it. Some people have a knack for selecting excellent investments. But if they choose at the wrong time, they might not be able to maximize the impact of that choice. You can also add insult to the injury of a poor selection if your timing is off, either because the market is working against you at the time or because your personal finances aren’t in the right condition to endure the hit.
Always be ready to follow the advice of those in the know about finances; for example, remove bad credit, says Better Credit Blog. Another good piece of advice is to think long and hard about when to make the plunge into the investment world.
Personal Finance Check
You need to take a good hard look at your financial situation before you make any significant investment. If you don’t have too much in excess, you can only jump in with a small amount, which might not make much of an impact or might preclude you from getting involved with some of the more reliable investments out there. Make sure you’ve saved enough to really make the leap with an investment without worrying about where you’ll land.
Timing the Market
If you’re concerned about growing money over a long period of time, worrying about where the market is at before you invest isn’t that much of an issue. But, for the short term, times, when the market is struggling, are generally a good time to look for bargains, allowing you to ride the wave upward when the inevitable positive correction comes.
Your Life Goals
Another issue with timing investments has to do with where you are in your life at the time. The monetary needs of a person in their 20’s will drastically differ from those of someone at standard retirement age. Knowing when to invest in these different junctures in your life will depend almost entirely on what you require out of those particular investments.
Considering when to make an investment should be something that takes a lot of deliberation. Only after you’ve decided that the time is right should you then start to concern yourself with where your money will be going.