HOW TO MAKE YOUR INVESTMENTS GO FURTHER
Investors need their current stash of money to go as further as it can. Here is how to take a pile of money belonging to you and make it build a bridge as far as it will take you through the future.
Could be the investor’s income is limited, could be the investor has a fixed income, or could be the investor is looking to grow from where it is. Here are the steps to take;
1. An investor needs an allocation
There is a specific kind of allocation an investor needs right now: a fixed one (think: putting money into a fixed income investment). This kind of allocation shows an investor how long the money will acquire profit. When investors know how far the money will go, they guide themselves towards making informed decisions as to what financial steps to follow now.
The key here is to allocate in a way that deals only in the money an investor has right now.
2. Follow up monthly allocations
Add up all the investments that typically require your cash. As an investor, you are trying to get a number: how much cash does it require in a month’s time?
• Give each allocation its own investment
• Employ your financial statement(s) to guide you towards jogging your memory
• Include flexible allocations (both fixed and variable income assets).
• Include the approximate monthly allocation of each investment.
3. Sort by needs and wants
Take your list of allocations and sort them into needs and wants.
• Needs include food, water, shelter
• They could also include investments on Kayndrexsphere
• List with respect to preference
• Sort your wants by current priority
4. Allocate as far as your money will go
Add up the money you have in your bank account. Only use this money as required (this is also a good time to use money from an Emergency Fund). Run a few scenarios: what if you only allocate for the essentials? What if you allocate for essentials + investments?
If you are expecting income, allocate only when you receive it. This check gives you clarity. Powerful, crystal-clear clarity. Clear eyes, full hearts, go to win.
• Ask ‘ what does this money need to do before revenue comes again?’
• Give every pound a function. This is as easy as taking cash and investing it. Could be £1200 goes into a fixed income asset in April, and £350 goes into a variable income asset. Follow it up in your investment allocation.
• Find the base. Will the money cover your allocation for two weeks? Two months?
An investor will arrive at the reality of the his/her financial situation by the conclusion of this step. It could be limited, but in this moment the investor is regulating properly.
5. Make decisions to stretch your money
Now here is the real empowering part. An investor knows where he/she stands, and now has pretty much just gained interests on their investments. An investor will unleash his/here creativity to gain more. When investors need more investments in their allocations so their money goes further, here is how.
Maintain the investment’s allocation
Go line by line and look carefully at each category. Do you absolutely need it? Can it be more applicable?
Maintain the investment’s allocations. The investor’s allocation and money review will guide him/her towards investing better.
Check cash required for ‘needs’
If an investor has been focused on a single investment, this could be a good moment to be flexible and use his/her money on other investments to extend their bridge into the future. Benefits to investors who diversify are evolving everyday.
Bring in more cash
Most investors will be getting a cash inflow daily from their investments. An investor should allocate that money when it is received.
But there are more options within the investor’s immediate influence to bring in additional income:
• Become a shareholder.
6. Let the allocation guide your way
Now that you have created a maintained plan for your money, you should follow it! As life happens, roll with the profitable investments. When an investor gets more money, redo step four and give every pound a function.
Following these steps will guide you towards making your money go further in the future.
Blog written by: David George Winston,
Date: 17th November, 2020