Is hundreds of dollars
worth of capital required in order to invest wisely? Not
even close. If you think that a large capital is the only way to achieve high profits
through investing and that investment opportunities are not available to people
on a lower budget, you are approaching the problem from the wrong perspective.
Firstly, you will need to judge all investment opportunities based on your objectives
as an investor, which vary from person to person, depending on your goals and aspirations
in life. As an investor, you may simply want to retire early and not see your income
decrease (in which case, passive investment opportunities are require), or you may
want to see your net worth rise above the value most people are confronted with.
A good investment opportunity should generate at least 20% in yearly returns. Your
net worth (the equity base) will give you far more leverage later on. After having
gone through your objectives, you will need to find the appropriate investment opportunities.
However, it is imperative that they go hand in hand with your visions and values.
You want investment opportunities to have the potential to generate financial freedom
and secure your income and net worth growth for years and years to come. You do
not want your choices to go against your deep beliefs and value system. If a certain
investment opportunities would jeopardize your personal integrity or self-esteem,
then, by all means, stay away. Knowing how to differentiate between compatible and
non-compatible investment opportunities will make going through the various options
you will be confronted with far easier. Do you want to be an active (and be directly
involved in the investment) or a passive (rely on others to manage your capital)
investor? Depending on your lifestyle and personality, one type of investment opportunity
or another might be the best option. While active investment opportunities require
more time to deal with, they do tend to produce higher returns. That is why a balance
between the two investment types is recommended.
Do not think that investment opportunities are not easy to find. All you need to
do is keep your eyes open, and you will be confronted with even more choices than
you can handle. At first, knowing how to differentiate the possibly profitable investment
opportunities from the ones not worth pursuing may seem difficult. A team of consultants
which are specialized several fields is therefore more than useful and will ease
your decision-making process. You must not let them make decisions for you. Rely
on them as a source for information, listen to what they have to say, and make what
you consider to be the right decision based on the facts they present. It is your
money on the line, and you are the only one responsible for making educated decisions
which may affect the rest of your life.
Even if your team can help you as far as documentation is concerned, you will need
to research on your own, analyze the investment opportunities you are interested
in and see if that type of investment may work for you. Your approach towards investment
opportunities must be personalized. You invest based on your own values, knowledge
and personality. There is no easy path to financial freedom. It is a path each individual
must discover and pursue in order to accumulate wealth.