Many self-made millionaires and billionaires will tip you with this knowledge, “to be happy financially takes time, effort and a lot of consistent management of your finances”.
They don’t become happy financially overnight. It’s most often a labor of love and requires a lot of actions. Some of the rules they follow will help you through to become financially happy too.
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Long term thinking vs short term : When you are trying your hand in aninvestment, it is either to reap benefits now or later. Initially determining why you are investing and when you expect to have your return on investment is very key. In many cases, you’ll be more likely to be happier financially when you actually decide to wait on your eggs to hatch. Taking for instance, a stock you’ve bought, waiting for the returns of the investment over a period of years is most likely going to offer you greater returns than when you’re in it for weeks. This is because over years, companies grow and you grow with them.
Invest in what you can afford: Falling for the idea that you need to get into debts to attain success is a lie, well sold as a narrative to market products. For ultimate financial happiness, it is within you to identify what you need, what you want and how much you should save up to afford what. This form of discipline will set you apart from your financial decisions. Not only will you avoid getting into debts over investments which have a possibility of failure (leaving you in double trouble), but you’re safe investing within your range.
Believe in your investments: When you want to buy or invest in something, believing in the brand will help you understand some of the ‘hidden’ things about it. It also determines your willingness to expand your investment or not. If you do not like non-halal food, it makes no sense to invest your money in it. Not only will you be constantly irritated by the moves that business is making, but it will also make you sad in the long run. There’s an attachment between what you actually like and what you invest in. They have to go hand in hand for best results. Do your research: To be more financially happy, invest in doing background checks for the companies you want to invest in. You need to learn, does this company exist, how long has it existed and what they actually do or their business module. Especially when you are buying stocks into a particular company, it’s important for you to actually learn more of the financial trends of the particular company you’re investing in. To a great degree, you’ll be owning a share, and are going to be getting dividends. Research for best results and to assess your risks.
Be fearful when others are greedy and vice versa: In many cases, it’s normal to be influenced by our peers to invest in a certain product or line. When your see people around you jumping into the newest investment, take a step back and ask yourself whether you are in line with the above tips. Do you believe in it? Have you done your own research? Can you afford it? Play by understanding this. Also, when others are sleeping, and you’ve done your homework, you stand a better chance of financial happiness by investing. You’re likely to reap the most benefits since you’ll put in the most effort before market saturation.Photo Credit: Getty