Investments with good returns
Investments with good returns sound appealing, don't they? We all have dreams, but figuring out how to achieve them can be difficult. So, what steps should we take to make our dreams come true? With so many options available today, how do we choose the right investment?
Investing isn't easy; we need to make smart choices. It’s also important to manage our emotions, which is where emotional intelligence becomes crucial in our financial journey.
What should we think about before making an investment? Are the key factors things like goals, risk tolerance, understanding the investment type, time frame, research, diversity, and liquidity?
Now, let's talk about returns.
The idea of investments with good returns sounds great, right? But why do we expect returns?
People generally expect returns on their investments as a reward for taking risks with their money and to increase their wealth over time. Returns provide financial stability and help people achieve their personal goals, such as saving for retirement, education, or improving their lifestyle.
From a psychological perspective, this concept ties into Self-Determination Theory (SDT), which focuses on autonomy, competence, and relatedness
As we go through life, we naturally grow and change, and our needs shift with each stage. Eventually, we reach a point where we seek independence, move out of our homes, and step beyond our comfort zones. In this journey, we gain important life lessons that shape us deeply.
While money isn't the only thing we desire, it plays a vital role in our lives, allowing us to live with peace of mind. The key to financial well-being is making money work for you, and that's where investments become essential.
It doesn't mean we should dive into investments without thinking, analyzing, or having enough financial knowledge. It's about reaching that stage by improving our understanding of finance.
Once we reach that point, we’ll be able to clearly understand what we want, recognize the right path, and know what actions to take. We’ll also be able to easily identify investments with good returns.
Now, let’s explore the important things we should focus on to achieve financial freedom!
Start by learning about financial concepts and the difference between financial intelligence and financial IQ.
Learn to manage your emotions and understand how emotional intelligence plays a role in your financial decisions.
Mindset Focus
1. Set Goals: Define what financial freedom means to you (e.g., retiring early, owning a home).
2. Believe: Stay positive and trust in your ability to improve.
3. Control Spending: Save for what matters and avoid unnecessary purchases.
4. Learn: Educate yourself on money management, investing, and budgeting.
5. Stay Calm: Don’t panic during financial setbacks-keep focused.
Money Focus
1. Budget: Track income and expenses to manage your money wisely.
2. Emergency Fund: Set up 3-6 months of spending for unexpected events.
3. Pay Debt: Focus on clearing high-interest debt first.
4. Invest: Grow your wealth through smart investments.
5. Build Income: Create passive income sources (e.g., rent, dividends).
6. Review: Check your progress on a regular basis and make adjustments to your strategy.
