Investing is a way to make your money work for you. It allows your money to grow and gain interest in the long run. However, Investing is not just a one-time transaction. It is a process where you have to stay diligent in order to maximize your returns. This article will give you tips on how to keep investing consistently.
Know Your Investing Goals
To help you invest consistently, you must first know your Investment goals, which will give you a big picture of your investment blueprint. For instance, before you decide to put your money into PAGIBIG MP2, which has a lock-in period of five years. You should first determine if your investment is a long-term type of investment or a short one. But what is the difference between the two?
- Long-Term Investment
A long-term investment is a strategy to invest your capital for a long time. This type of investment leverages time to maximize investment and yield high returns. For example, Mark bought a one-hectare land property eleven years ago for two million pesos. He waited a couple of years before he sold his property for triple the price because the land value had appreciated over the years.
- Short-Term Investment
On the other hand, a short-term investment strategy is where an individual invests in assets intending to hold them for a relatively short period, typically less than one year. Swing trading is an example of short-term investing as the market is volatile. You need to know when you should buy low and sell high.
Create A Separate Account
Creating a separate investment account may help you segregate your savings, emergency, and healthcare fund. For example, you can make a different bank account solely for cryptocurrency investments. Another one for emergency funds, just in case something urgent came up. Through this, you can sort out your assets efficiently and serve their purpose while avoiding mixing your capital with other funds.
Build Your Habit Loop: Set A Reminder
Setting a reminder is essential to build a habit of investing consistently. According to the book “The Power of Habit” by Charles Duhigg, there are three stages in a habit loop— Cue, Routine, and Reward.
It will help if you start first with your cue. It might be an alarm from your phone every 15th of the month to invest in a cooperative fund in your office. This alarm can be your cue to walk to the cooperative office of your company and deposit your share. Once you build this system, you will have a routine of walking every 15th of the month to the cooperative office, paying your share, and becoming your monthly habit to invest.
Track Your Investments
Tracking your investments may encourage you to maintain your assets and invest consistently. Observing the market trend lets you understand what you should do to mitigate the effects of market volatility. This lets you know where to put your capital and yield high returns. You can use tools to monitor your investments, such as the InvestaWatcher.
Investing Should Not Be A Sacrifice: Celebrate Small Wins
Some people fail to invest consistently because they view it as a sacrifice rather than an opportunity and a process. For example, Anne is targeting to invest nine thousand monthly in a mutual fund with her fourteen thousand salary. Thus she chooses to deprive herself of eating at her favorite restaurants to meet her investment goal. But the reality is, delaying gratification is often a skill that only some possess.
Therefore, you should occasionally take a bite of your cake to keep you motivated to invest consistently. It might be treating yourself in a restaurant if your investment yielded a high return in a specific period. Through this, your investment journey can be sustainable in the long run and have a higher possibility to invest consistently.
Final Word
Investing is a powerful tool that allows your money to work for you and grow over time. It is not a one-time transaction but a process that requires consistent effort to maximize your investments and achieve their full potential. To invest consistently, it is essential to have a sustainable investing approach and a clear understanding of your investment goals.
Overall, consistent investing, thoughtful goal setting, organization, tracking, and a positive mindset, can lead to financial growth and success over time.
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