Have you ever wondered why people invest their money? Investing has become increasingly imperative over the years. People in Singapore and all over the world would like to have protection and security for the future to come and for this reason they invest. All forms of investments are without doubt the answers to the fears, qualms and uncertainties of life. Investments are an effective way to achieve the things you dream of such as a new house, an excellent education for your children and (why not?) to obtain a comfortable and stress-free existence. However, there are 3 essential things you should always bear in mind in order to generate the best out of your investments
Be Informed on Investment Costs
Just like any other objects you buy, investments have its related costs that should always be taken into consideration.
Investment costs are one of the most essential things for investors to know and to bear out. Remember that every dollar you shell out in investment costs is a dollar less in prospective profits. And all investment costs that you sustain in all your investment transactions will all count up over the years.
The usual expenses of investing may comprise admission fees, administration and processing fee, transaction fee, commission, brokerage expenses, stamp duty and government taxes.
Furthermore, there are other less apparent investment costs that you incur when investing and some of these may include:
- Opportunity Costs: what you renounce for undertaking a specific choice, decision or action.
- Individual Responsibilities: commitment to sustain your mortgage for the following 10 years.
- Stress and Pressure: losing some quietude and sleep due to an investment.
Never Predict the Future
Stay away from any actions bent to foresee or predict what will happen in the future. If you cannot stop doing so, you will likely to commit errors and substantial losses. Make note that it is completely impossible to know the future, especially in relation to the investment sector.
Nevertheless, there are lots of persons who are on to it every time. Investment analysts as well as stock brokers usually assemble lists of stocks, together with a long series of advise and warnings according to their predictions of the potential performance of a given company. Economists make public statements on the predicted rise and fall of interest rates even before confidential bank reunions are made. Real estate agents generate all kinds of graphs or diagrams to show the possible property price trends for the next 10 or 15 years.
Avoid predicting the future. It’s more apt to say, “who knows?” There’s nothing wrong with that.
Because the more you realise your inadequacies and scantiness on a particular activity, the more you can concentrate all your time, endeavours and force to the stuff you really know.
Focus Your Energy on Essential Things
As you probably know, there are plenty of resources available in Singapore on ways to generate a lot of money from various forms of investments. These resources are functional and constructive, especially for beginners in the investment sphere. Yes, they can be exciting but, at the same time, confusing. For this reason, you have to make a choice.
Mind you, you don’t need to learn a million things in order to generate investment returns. You just need to have a comprehensive notion of the basic things on investing, the basic things that really matter. As you have observed, a wide assortment of investment products and strategies are available for you to choose from and to deal with. Focus your energy on essential things, things that really count and try to comprehend them very well so you can confidently and easily cope up with your investment choices and objectives.
Do you have other important tips for fellow investors in Singapore? If you have, don’t hesitate to leave them in the comments below.
Did you learn something from this article? You may also like to read “The Role of Psychology in Investment.”
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