Register to chat with like-minded investors on our interactive forums.
For the last couple of years, the global stock market has been a bull market, as stock values have constantly been rising.
Nevertheless, as reported by Gallup, 55% of adult Americans owned some kind of stocks in April 2019. According to the same report, that percentage was 62% in the 2001-2008 period, prior to the Great Recession of 2008.
But it would be wise to take advantage of the bull market and invest more in 2020. Here are some tips for doing it more efficiently.
1. Setting an investment goal
If you don’t know what you’re investing in, you cannot have a clear aim. Also, your investment fund might be scattered in several places without any effect.
It would be wise to set one or more investment goals and then follow that path. For instance, newbies in the world of investments need to form an emergency fund. That’s a practical initial goal.
If you already have this safety cushion, your goal can be building a budget for your children’s studies or a new property.
Once you define what you want to accomplish, stick to your plan, and streamline your investments through that funnel.
Also, robo-advisors might come in handy for people who are only at the beginning of their investment career.
2. Choosing the right market
When you’re planning to invest, the choice of the market is of paramount importance. If you choose the wrong market, you’ll earn less than you planned or even lose money. And because of the coronavirus pandemic, the situation is additionally complicated in 2020.
However, the health care market turns out to be one of the safe havens for investments, despite the pandemic. For now, this market has suffered less than some other, potentially lucrative markets, such as the energy sector.
Moreover, the real estate market is usually a low-risk environment, given that you invest moderately. In that sense, it would be wise to think about investing in REIT or real estate funds, rather than buying a property.
3. Launching a side business
This is the dawn of the age of the gig economy. Many workers are leaving steady jobs and turning to freelance careers.
However, it’s not recommended to leave a well-paid company job for the uncertain freelancing market. What is recommended is to launch a side business, in addition to your regular job.
This doesn’t have to be a huge investment, but it can significantly improve your budget. For example, you can use your existing skills and put your creative ideas to practice via that business. Some businesspeople might find this option fulfilling if they don’t get enough chance to express their creativity during their regular working hours. Online tutoring or creative writing are some of these options.
Starting a full-scale side business with employees is another possibility. In that case, you need a valid business plan and more money for the initial investment. Naturally, the risk will be higher.
4. Developing your skills
Investing in your knowledge and skills is sometimes more valuable than making financial or stock investments.
In line with that, 2020 could be the new beginning of your educational cycle. In these altered living conditions, many people have already started acquiring new skills as a part of the New normal, i.e., spending more time at home.
For example, applying for a project management course is always a useful thing to do for every entrepreneur. Likewise, learning foreign languages opens new opportunities, market-wise, and it activates the brain, as well.
Invest in different sets of skills that will increase your business operability and make you a better investor.
5. Finding the right balance
When you give your mind and body some time to recuperate, you can get a high return on investment.
In other words, find the right balance between your work obligations as an investor and your personal life. Spend time in nature, go out with your friends, and let off some steam.
We often read that some big-shot entrepreneurs work for 70+ hours a week and sleep a few hours a night. While this might work for a few, most of us mere mortals need to get proper rest. Make an effort to get enough quality sleep and maintain a healthy sleep schedule. This means that you should cut on your screen time late at night and go to bed earlier. Also, a quality mattress is important for a good night’s sleep, so don’t spend nights sleeping on the couch. Go to bed on time and recover from the daily grind.
The final word
Possessing millions of dollars doesn’t make a good investor. Having a vision, setting goals, and working on your abilities will make you a successful investor. In addition to that, don’t put all your eggs in one basket, but avoid scattering assets, as well. Finally, give your mind and body time to rest, and you’ll have more energy for making reasonable and profitable decisions.
