Investing is something that everyone does - from the smart Wall Street traders to the assembly line workers who skip breakfast because they don't have enough money before their next paycheck. Everyone puts their time, effort, and energy into what they think is important. If you train for a marathon on a Saturday or go for a 50-mile bike ride, you're investing in your fitness. If you spend your weekends with your family, going to swimming lessons, Little League games, or museums, you're putting money into your kids. And if you're taking classes to get a college degree, you're doing it to get a better job.
While each of these investment strategies
appears to support a distinct objective, they all—along with dozens more—have
one thing in common: they're all meant to secure the future. Your chances of
having a happier, more fruitful retirement are increased by making an
investment in your health now. When you invest in your family now, you can
create bonds that will last even when you need more help from others and have
less to offer in return. Investing in your career now can open professional and
financial doors that were previously closed.
The majority of
people see the greatest financial gains from their assets after retiring, but
the earlier you begin to plan, the better off you will be in the long run.
Taking even a tiny step towards a new approach to investing—the financial
methods described in this blog post.
Common Motives for Investing
The reasons for
financial investing are almost as numerous as the investors themselves. Of
course, your priorities may differ from those of your neighbors, but in
general, investment motivations fall into three categories:
- 1. Investing in order to accumulate wealth.
- 2. Investing to support a family.
- 3. Retirement planning through investing.
Investors who are
focused on increasing their wealth have a tendency to look forward more than
other investors do. Wealth enables you to build and sustain a good standard of
living. For some, comfort may be a nice-sized house, a couple of reliable
automobiles, and a trip to somewhere warm for a week every January. Many
investors are content with such a lifestyle, while others have higher
ambitions. You can increase your lifestyle and net worth by gradually
increasing your wealth over time, which is the safest and most secure method to
achieve so.
Family oriented
investors typically strive to accumulate sufficient wealth to purchase a home
in an area with high-quality schools, occasional vacations, and amenities such
as ballet shoes, algebra lessons, and summer camp. These investors must also
plan for the future, including college tuition, which is never inexpensive.
Consequently, family oriented investors must be adaptable.
Retirement-minded
investors have a longer-term perspective than the wealthbuilders or the
family-oriented investors. You know the kind, the ones who worked hard for 40
years and made it to the top of the company, but still live below their means
and always have one eye on the future. The goal for them is to have a smooth
transition into retirement, where they can keep living the same lifestyle
they've been living all these years without a paycheck.
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