What is goal oriented investing – and how to go about it

The main point of financial planning is to achieve goals and have a better life. Investing, therefore, is central to doing this. Today, there is so much that investors want to achieve with their savings such as purchasing a house, paying for college or retirement security. This means that they have to make smart investment decisions for their goals to be actualised.

The safe investment sequence

If you save but fail to invest, inflation may make it difficult for you to achieve your goals. You need to multiply your capital so as to make your goals achievable.

The following sequence can be followed for success in achieving your goals:

1) Accumulate emergency savings before you invest. An urgent need for money may arise and without such savings, you could be forced to liquidate your investments at a loss due to desperation.

2) Start investing early. The sooner you start, the better. Remember that money has time value so by investing early, you allow your investments more time to grow.

3) Focus on value. Value investing is where many of the most successful investors made their money. Look for companies that are worth more than their market value, invest in them and hold the investment for the long term.

4) All short term high-interest personal debt should be paid off. You cannot be investing while still incurring debt interest much higher than your investment return. Such a scenario can be likened to being on a treadmill that is moving back faster than you can run. You will definitely find yourself moving backwards.

5) Don’t borrow money to invest. If you are a new investor and you want to invest say for example in the stock market, do it with your own money. Adverse market fluctuations may force you to sell your position and you could end up accruing a lot of debt. Therefore, if you choose to invest, do it the safer way – with your savings.

6) Accumulate cash for major purchases like vehicles and furniture rather than drawing money directly from your investment. Only with such financial discipline can you begin investing for your long term goals.

Some people may find speculation very attractive. However, if you have to speculate, do it cautiously with cash you can afford to lose without affecting your major financial goals.

Always keep in mind that the investment landscape is one in which your money can go up in smoke if you’re not careful. Therefore, consider the above sequence before handing in your hard earned savings.

How to help young adults invest for the first time

Financial skills are essential to being successful in life. As parents, we help our young adults develop the skills they need to find a job, get into university and balance their budget. But what about making their money go further? In the long term, investing is a fantastic way to ensure your grown-up children will be able to buy a home when they wish or make other big investments, such as university fees for their own child, paying for weddings or going on the honeymoon of their dreams.

Here are three steps to helping young adults learn to invest for the first time.

1) Start young

Investing for your child can help them to learn about the importance of making the right investment. Purchasing stocks and shares for a child is a great way to begin building a fund for their future and when they are old enough to start investing for themselves, this can be evidence of why investments are such a great idea.

2) Modern investing

There are many, accessible ways to invest these days. With apps and websites galore, it’s easier than ever to invest small and large amounts. Sit down with your young adult and go through some of the apps available. For young people with their first jobs, suggest they invest a little each week and promise not to touch that money until they reach a certain age. It will be good for them to see how the savings build, but also how the money grows because it has been invested. Using an app makes it quick and easy to see how money is growing and to change the risks attaches to your stocks and shares.

3) Give the gift of investment

For a big birthday, rather than giving cash or an extravagant gift, consider giving them an investment, whether that is a large scale purchase such as a home or car, or an amount of money to be spent on stocks and shares. A large investment will be a great way to show them how stocks and shares work and could one day become a deposit for a house!

Getting young people excited about investments can seem daunting, but doing so will help them to have financial stability in the long term.

Is it a good idea to invest in water solutions?

If you’re reviewing your investments portfolio and looking around at different opportunities, you might want to consider the benefits of investing in water solutions providers.

 

Why invest in water solutions?

Water is the principal building block for life. Without water, we’d be absolutely nowhere. Global warming is creating lots more arid, dry summer climates in countries that previously experienced the damage caused by lack of water. You’ve only got to take a look at some of the aerial photos of the UK and London published in the summer of 2018 to see how lack of water impacted our typically lush environment > view images 

Hyde Park, London

Water solutions companies offer a variety of global services across a wide range of sectors. These include:

– Grey water recycling, which can eradicate bacteria and other contaminants so water can be safely re-used in homes or businesses > click for details 

– Drinking water treatments to remove biofilm and water-borne bacteria from supplies > click for details 

– Desalination to turn the salty waters of the ocean into water that can be safely used in industry or even for drinking > click for details

– Agricultural and horticultural solutions to maximise available water for cultivation of crops and successful animal care. Irrigation, hydroponics, and use of greywater recycling all offer solutions that can be utilised by farmers and growers around the world

– Sludge treatments to extract the maximum amount of water so it can be re-used > click for details

Importance of water solutions

It’s said that water will soon become more valuable than oil due to increased demand from consumers, industry and agriculture. The scarcity of water is likely to prove a major hindrance for a variety of industries, including oil and gas, pharmaceutical and mining sectors.

Experts predict that by the year 2035, 40% of the world’s population will be living in locations where water is in scarce supply. This means desalination and water recycling will become the norm. Industry already uses around 20% of global water supplies, and many authorities are cutting back on permissions for industrial water extraction. This will increase pressures on business to re-use or desalinate.

All in all, it’s likely that investing in water solutions will prove a wise option in coming years. If you would like to find out more about our tailored investment solutions, please don’t hesitate to get in touch.

3 costly investment mistakes you should always avoid

Making the most of your investments can be difficult. Everyone understands that with the nature of investments, some risks are inherent. But, making these common, yet costly, mistakes means you’re putting your money at a much higher risk than it needs to be.

Here are three of the most common mistakes investors make.

 

Investing in something you don’t understand

Investing can be a complex process, with a wide number of avenues available to invest your money. One of the quickest and easiest ways to lose your stake is to invest it in a business, scheme, or sector that you don’t understand. If you’re going to put your money into a business, make sure you understand the business model as thoroughly as possible. Same if you’re investing in a product or a new invention. Without proper understanding, you’re not able to make an informed decision about the risk you’re facing.

Letting the heart rule the head

When an investment does well, it’s easy to become overly attached to the company behind it. But it’s imperative to remember the nature of your investment, otherwise, your judgement is clouded. If you begin to love the company, you may be tempted to keep hold of those shares long after you should have sold them, to the point that you could end up losing your entire investment. Similarly, using gut instinct about which sectors you’re going to invest in is never going to be anything more than a pure gamble. Use facts, figures, and data – don’t use your heart.

Having a lack of patience

Slow and steady wins the race. This is applicable to many things in life, but it particularly applies to investments. If you want to see steady and consistent return, then you have to be willing to put a little bit more time into allowing those investments to develop. If you have unrealistic expectations about the time in which you’re going to see a return, you’ll end up consistently selling your shares too soon; maybe even at a loss. Investments are not a ‘get rich quick’ scheme, and you should never invest money that you can’t comfortably afford to tie up for a while.