Goal stone.
This represents the ‘Why’ behind your decision to invest and it will go a long way to help you make the right investment decisions. We all have desires and aspirations. Planning your investments according to your goals will help you determine the kind of investment to subscribe to and help in achieving your short- or long-term goals.
Knowledge Stone.
Once you identify the ‘why’ of investing, it is best to arm yourself with the fundamental knowledge of finance as well as the different kinds of investments. With the knowledge stone, you’re sure to find the investment option suitable for achieving your goals.
Time stone.
Investing is not a get-rich-quick scheme or a money-doubling scheme. It takes time. Also, patience is required to watch your money grow to the point where you can fully say you have attained financial freedom.
Risk stone.
When you invest in the future, there lies a probability of losses in the expected return on investment (ROI). However, the biggest risk is not taking any risk at all. You cannot achieve the financial freedom you so desire without taking the risks.
Liquidity Stone.
Once investments are in place and the risk has been taken the wait is activated. The question is usually ‘How long would it take to convert assets into cash?’ The Liquidity stone is important to an investor, as it determines how quickly you can buy, sell or simply cash out on your returns.
R.O.I Stone.
‘What do I get?’ This is usually the best part of investing money. Through the risk and the long wait, the return on investment is measured by dividing the return by the cost of investment. It is simply the return or profit on an investment, compared to the initial amount invested.
Keeping these elements in mind helps you understand how investments work and what to expect from an investment vehicle.
For more information, send an email to [email protected] or call 0700 267 3767.