Investing in My Future

Summary

Setting realistic, measurable goals is a crucial undertaking for individuals and organizations looking forward to success. As an individual, I have a number of goals that I aspire to achieve at certain points in my life. From a financial perspective, my top long-term goals are to invest adequately so that I can build a successful business and be able to give quality life to my family even after retirement. In short, I simply want to secure my future by saving more, investing more and ensuring that I have the money to meet my needs and those of my family not only now but in the future. Clearly, achieving one’s goals calls for finances and proper financial planning.

Investing in My Future

Securing one’s future together with that of close family members is something that every individual must consider as early as possible. Given that the future is always uncertain, and further considering the unforeseen hardships caused by the coronavirus pandemic, individuals can no longer predict how stable their jobs or businesses will be. These uncertainties should serve as a wakeup call for individuals to strategize their finances and seriously invest for their future. Investing in one’s future has invaluable benefits to individuals, including making life worth living after retirement.

Three (3) Ways I will invest in My Future

There are several ways through which individuals can invest in their future. For me, monthly savings are a major way through which I intend to secure my future. Essentially, I plan to open a fixed deposit account with the bank into which I will deposit a certain amount of my income every month. I do not plan to wait until I am employed to save; I am well conversant with the principle and the concept of compounding, which simply postulates that investing generates more earnings in the form of capital gains, interest, and dividends (Royal Bank of Canada Global Asset Management, 2021). The principle of compounding also states that it is more effective to invest little sums of money for longer than waiting to invest one large sum of money. Based on this principle, I will start saving right away so that I can accumulate more interest over a long time.

Besides banking, I also intend to invest in my future by venturing into the stock market. Precisely, I am exploring a number of companies from whom I could buy shares with the hope of making money by selling the shares at a later date when the companies’ value increases. As stated by Dixon (2021), stocks are a popular and potentially lucrative way of investing because stockholders can earn decent money through sale of shares. Although stocks as an investment plan carry a significant degree of volatility especially in the event that a company’s value drops, I can still minimize the risk by diversifying my portfolio such that I hold shares in different companies in different industries.

Thirdly, I plan to start and run my own business at some point in my life. Much as the idea of getting employed after completing my studies sounds great, I have ambitions of establishing my own business. Owning a business does not only grant autonomy to individuals; it also provides financial freedom (Dixon, 2021). I consider a business as a prudent way of investing in my future because I could choose to still remain employed and employ someone else to operate the business. This way, I would earn extra income that I could use during my retirement years.

My Confidence Concerning Investing in My Future

Between banking, the stock market and business, I feel most confident in business as a way of investing in the future. Each of the three options has its strengths and weaknesses, but I feel that I can exercise greater control over a business as compared to the other two options. I am aware that business can be a risky undertaking too, perhaps even riskier than stocks or even a bank account. Nevertheless, I believe that with adequate research advice, and a sound business plan, I can run a successful business and secure my future this way. Secondly, I am more confident in building a business because with the right drive, skill and talent, business is more profitable compared to buying stocks (Kennon, 2021). In addition, I derive greater confidence in business from the fact that I can make business a side hustle as I continue with employment.

Challenges with Investing in My Future

Of the three strategies described above, my perception is that venturing into the stock market might be the most challenging. As highlighted, investing in stocks is quite a risky understanding especially in light of the volatility of stocks. It goes without saying that there is no guarantee that investors will make profits by buying and later selling shares. The risk and return of this option depends on the value of the company; when the company is doing well, shares fetch high prices. In contrast, if the company whose shares an investor holds is doing well, the investor stands to make huge losses (Dixon, 2021).

To overcome this challenge, it will prudent of me to embrace the idea of portfolio diversification. This simply means that I don’t invest all my money in a single company; rather I will buy shares from different firms. To be safer, I could consider combining stocks with bonds; the latter carry a moderate risk as compared to stocks (Dixon, 2021).

Conclusion

Investing for the future is one of those things that every individual must think and act about as a matter of urgency. No one knows about tomorrow; it is therefore prudent to invest for the future now so that life becomes worth living even when retires or loses their job due to unforeseen circumstances. A number of options exist for people to invest for their future: stocks, bonds, business, and banking are just some of the many ways of investing in one’s future. Each choice has merits and demerits and it is the duty of individuals to weigh the pros and cons before deciding which way to go.

Sources

Dixon, A. (2021). Top 10 ways to invest money. https://budgeting.thenest.com/difference-between-stocks-bonds-mutual-funds-3863.html

Kennon, J. (2021). 3 ways to invest money as a beginner. The Balance. www.thebalance.com/how-to-invest-money-357632

Royal Bank of Canada Global Asset Management. (2021). Five principles on how to invest your money successfully. www.rbcgam.com/en/ca/learn-plan/investment-basics/five-principles-of-successful-investing/detail

Essay Tutors
Calculate your paper price
Pages (550 words)
Approximate price: -

Why You Should Choose Us

Affordable Prices

Since we know that we are dealing with students, either part time or full time, many might be having financial constraints, but still want to pursue academic life. This has made us ensure we have very affordable prices, and wonderful discounts, yet give high quality products.

Professional Writers

Our reputation has been built because of the dedicated and highly qualified writers in our team. The writers give clients high quality products which guarantees return clients and referrals.

Quality

Our team is dedicated to giving clients the best quality products. However, if a paper does not meet the requirements stated by the client, our team will provide free revisions to the satisfaction of the client.

Moneyback guarantee policy

We believe that clients should get value for their money. If the client finds that the product has not met the requirements stated, we will refund the amount paid.

Original papers

We understand how plagiarism can ruin clients’ careers and reputation. We thus strive to provide original papers to our clients. We use several tools to check plagiarism. This ensures that clients get products that meet their institutions’ standards.

24/7 Customer Support

You can reach our support team via, live chat, email or phone. All your issues will be dealt with asap as the team works round the clock.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have other errands to run? No need to worry. Place your order with us, carry out your errands while we do your paper and deliver on time.

Blog Writing

Give us a topic you want your blog based on, and let our team handle the rest. You will get the best article to be published in any forum you want. We have able team to do all the work for you.

Assignments

Many students are given assignments by their tutors. However, students find it challenging to just even come up with a topic. This should no longer be a problem to you. Just visit our site, contact the support team that will help you place your order, and find the best writer to handle the assignment.

Dissertation Services

Dissertation has proven to be challenging to most students. For this reason, we have specialized writers who handles only these kind of papers. You will be in constant touch with the writer and the support team once you place a dissertation order to make sure nothing goes wrong.

Editing and Proofreading

Some students have good points and writing prowess. However, they make minor mistakes that deny them good grades. To avoid such cases, you can give us your already written paper so that our team can edit it to the correct formatting style, language, proper flow and the correct academic language. This gives you an upper hand to get the best grade than a person whose job has not been edited.

See all services