How to Make Economy-Proof Investments
Wouldn’t be nice if all it took to put this blog together was some secret that always and without fail, would grow your money if you chose to invest in it? Some sure-fire-no-nonsense tactic you had just SOMEHOW never heard about? News flash: if you’ve ever heard someone pitch an investment opportunity or financial strategy that seems too good to be true, it’s probably because it it.
Don’t get me wrong. I’m no pessimist, but I do know that making solid investments takes knowledge, understanding, and an eagerness to always be learning. What I mean is, people don’t typically stumble their way into financial freedom; they work hard and strategize for it!
Every week, my goal is to continue filling your tool belt with tips and resources to put you on a pathway to success. Last week we talked about using the SMART acronym to analyze every financial investment you make. (If you missed last week’s blog, you can either touch back here, or continue along with us! I’ll be sure to provide refreshers.)
As we move towards making any financial investment, we must ask ourselves 5 simple questions:
S – What am I spending?
M – What am I making?
A – What are my assets?
R – What is the risk and the potential return?
T – How much time do I plan on keeping this investment or asset? What effect with that timeline have on me?
What better way to learn how to make SMART decisions than to sit down with a friend and work through a real-life decision at hand?
Let’s talk about MBAs in the framework of the SMART concept… Tune in and let us know what you think in the comments!