It’s a new year – 11 more months lie ahead. With some discipline and focus you could be much closer to your investment goals this time next year – just follow our month-by-month plan.
It’s the start of a brand new year and the perfect time to make, and more importantly, keep your investment resolutions. Keep them simple, specific and reachable, and then keep track of them throughout the year.
With February, comes thoughts of love and connecting to your partner. Investing also involves partners and they can make or break any deal you enter. Find like-minded partners who are considered experts in their field. Look for real investment technology players who have actual real estate experience and start building and nurturing those relationships.
It always pays to do your homework. The right information will set you on a path to success, but the wrong information can ruin you. This is because poorly informed investors make poor decisions. You must find trustworthy sources of information, instead of blindly following what salespeople tell you about the latest, must-have development. Make sure you pick investment partners with strict due-diligence processes.
No one wants to be a fool, especially an April Fool, so use your head, not your heart when making decisions. SMART investors drill down to look at the numbers to get a good understanding of what the investment could generate. Be responsible and do not allow yourself to be swept away by your emotions. If you are faced with a deal that seems too good to be true, take the time you need to have a good hard look at the numbers and make sure you know everything about the deal before investing.
Take on the wealth gap – the yawning space between the world’s extremely wealthy 1% and the rest. One of the best ways to breach the wealth gap is through technology, which gives the 99% access to assets and opportunities otherwise reserved for the 1%.
When you invest in property, it’s all about the rent. Big discounts can blind you to the real costs involved. A cheap building that you cannot fill with tenants will become an extremely expensive mistake.
Get to grips with crowdfunding, where people club together to fund a project or venture. Online investing portal Wealth Migrate received its CATI Financial Service Provider licence in 2021 so the investing platform could maintain its commitment to using technology to remove the middleman, cut costs and increase trust and transparency.
Finance can help you grow, but a bad deal can destroy everything. Tread with care before committing yourself to a finance deal that looks too good to be true. When you invest offshore, you are already on the back foot in terms of knowing the ins and outs of how institutions work, so take time to make an informed decision.
Investing is about growing your portfolio, and nothing helps you do that like compound interest – Albert Einstein’s “eighth wonder of the world”. Wealth Migrate allows you to reinvest your returns from your investments and get growth on top of growth.
Make sure you are benefiting from SA’s embattled rand. When you invest rands in an international property deal, you have a built-in buffer if your chosen First World property market loses value. If the rand weakens substantially, you score when you convert the First World currency you have earned back into rands.
Learn about cash flow and capital appreciation. Investors can make good returns even in lean times by being savvy and seeing the opportunities available in a struggling market, and then focusing on the upside potential and the projected income.
Even in the best of times, change is the one constant, even more so during a pandemic. To become wealthier, take the advice of the 1% – make good, solid decisions based on thorough research and get trustworthy partners in your corner.
*Scott Picken is the Chief Executive Officer of online investing platform Wealth Migrate