Every successful investor usually has a set of principles that they follow to ensure efficiency and profit for their investment. If you are thinking about starting an investment, read the 3 tips below to make sure your investment will help you to earn some extra income.
1/ Do not start investment before having a plan
Planning is the very first step to help successful people achieve what they aim for. Before investing in something, make sure you define your goals and plan clearly. The planning process will help you to consider every important aspect of your investment and organize required tasks in a more reasonable and effective way.
Start your planning process with some market research to choose the right investment channel for yourself. Each investment channel will fit into different plans. However, every plan needs specific goals, strategies and timelines. Setting your desired income after 6 months or 1 year of investment will help you have a clear foundation to observe and evaluate the results, as well as adjust the strategies to help you achieve your desired income more easily. Don’t forget to have some backup plans for potential risks that can occur to protect your personal finances.
2/ Find a partner and seek advice from experienced individuals or organizations
If you don’t have much experience in the field you are planning to invest in, mistakes and errors sometimes are unavoidable. Hence, you are advised to find a partner to share the investment and complement each other with limitations on knowledge, experience and competence. Accumulating investment knowledge from different sources will help you have a diverse perspective on the market and help you effectively analyze and evaluate to make wiser decisions.
Additionally, you should also seek advice from experienced investment advisors and professionals. These specialists usually own a large source of knowledge and information about the market, as well as specific advice. This may cost you some more money, however, it will help you to limit potential risks and financial losses in the long term.
3/ Do not borrow money from others to start an investment
Starting an investment comes with several potential risks as the beginning is the period of time when you usually don’t have enough knowledge and skills to allocate resources, time and money to generate the highest efficiency and income. Therefore, to protect your personal financial situation, you should not borrow money from other people to start your investment. This will help you to avoid having an additional amount of debt in cases your investment does not success.
Above are 3 basic things you need to consider before starting your own investment. However, if you find yourself unready or unsure what to invest in, you can simply start opening a Term Deposit to earn interest while exploring different markets. When you put your savings into a Term Deposit, this will help to create more money for you to start your investment when you are ready. If you are ready and interested in open-end funds, find out more about investing with VinaCapital right in the Timo app here.