🌼The Easiest Path To Win With Investing in 2023(HIGHLY RECOMMENDED)

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🌼The Easiest Path To Win With Investing in 2023(HIGHLY RECOMMENDED)

How to make the best financial year ever.

Being successful when investing is simple.

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You just need a proven path that works for others and adapt it to your current financial situation.

The problem is that many people want to make it unnecessarily complicated by trying to be smarter than others. For example, all the times I have lost my money investing, it has been due to two main problems:

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I tried to earn more money than what the investment could make me (by taking unnecessary risks).

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I tried to earn money faster than it took (trying to time the market).

You can create wealth when you realize an investment’s potential and limits and use it in your favour. But you must focus on what you will be earning on the way and how to do it.

Read also: The two things you must do to transform your money situation ( must read)

Here are the ways you can improve your financial year by using the simple path to win in investing.

Analyze and understand very well what you want to accomplish.

Although it may seem obvious, I want to start with this point because many people do not understand what their goal is with a specific investment, making them lose focus on what they want to achieve with it.

For example, many people invest in many different cryptocurrencies because “that will make them rich,” but they don’t have clear what those limits are.

If you ask any dogecoin investor months ago why they bought that crypto, they will not be able to tell you why they chose the price and what their end price was going to be.

Plans kill hype.

When you know exactly why you want to buy something and your financial goals with that investment, you will earn profits.

You can buy whatever you want if you know why you are doing it and what your plan is with it.

Using the same example as above, if someone who wanted to buy Dogecoin analyzed why he would buy that crypto and what would be the starting and end price of that investment, he probably would not have been losing money now.

Don’t buy something only because you think it will have potential. Buy it with a solid plan. If you think it is ridiculous that your plan will be fulfilled, then it is a clear sign that you should not buy it.

A solid plan needs to have a starting point, why you want to buy it, and an end price and it has to make sense with the current market situation. For example, good financial plans could be:

I want to buy SP500 now because it has 20% down, and I want to take advantage of the current price. My starting price is the one that has now, $3800, and my end price could be the last all-time high or wait until my retirement because it is a solid investment.

I want to buy Bitcoin now because it is 80% down (around $17,000), and I want to double my money. I don’t need the money I will put there, so I can wait until it goes to $34,000.

I want to save $15,000 by the end of the year, I can only save $1000 from my salary right now, but I plan to do freelance work and ask for a salary raise to achieve the other $3000, also I will put that money in a high-yield account so it could make profit monthly.

Those plans are fantastic because they are realistic. You can see why I’m buying something and my plan with that investment. I know I can achieve it because they make sense.

However, when you go like that:

I want to buy $LUNA because it is cheap now and will make me rich when the hypes eventually come.

I will buy $100,000 Tesla stocks now because it is 80% down, and I can have wealth next year with it.

I will save $100,000 in 2023 (With a $45,000/y salary).

I will make this quick trade with leverage because it has good news, and I can make money quickly.

You will not achieve what you want because it doesn’t make sense. They are based on things you can’t control, and you don’t have a solid reason why something could be a good investment.

Don’t take unnecessary risks unless it has exponential potential.

What do you prefer, $1,000,000 in a bank account that gives you $1000 monthly, or give to me that I will give you $1500 monthly?

If you are smart, you will not give it to me because you don’t know me.

People take many unnecessary risks because they don’t analyze their earning potential.

For example, I will not move my money from my 8% annual deposit certificate unless there is something with at least a 15% return and similar risk, like a house.

I would not buy a house that leaves me less than 15% of return in rent because it has risks: tenants who do not pay, months without having someone living there, and repair damage.

That time that would be investing in the house can be a time I can use for a new business while I have my passive 8% doing nothing.

I would not have Bitcoin for less than a 50% return because index funds in the stock market can already give me a 20% return when the market recovers and dividends.

That’s a risk I am willing to take now because of its exponential potential.

Treat money like it doesn’t exist.

One thing that prevented me the most this year from investing money and making wealth was being consistent with my investment plan.

For that reason, once you have a plan that you can accomplish and the risks you are willing to take, you will use an approach that helped me achieve almost all my financial goals, which Ben Le Fort talked about in his last article: treat your money like it doesn’t exist.

Here’s the thing, you don’t go to a fancy car dealer and ask for a luxury car without having money. You don’t make unnecessary plans if you don’t have enough money to pay your bills. You don’t make money plans if you know you don’t have money.

Every time you spend money, it’s because you know you can cover it somehow.

So if you start treating money like a tool to do specific things, and then the rest like it doesn’t exist, you won’t be tempted to spend it. You will use the investment money to invest, spend money to spend on things, and the bill money for your bills.

Don’t see your investment money as money and you always will have money to invest.

Read also: 3 habits to stop ASAP if you want more financial freedom ( must read)

Final thoughts

Investing money and earning profits it’s easy. You only need to know why you buy an asset and your start and exit plan.

Right now, the markets are giving people many opportunities, but they will be good for you only if you understand why it is a good investment option.

If you don’t plan to sell soon, don’t worry about the current price, and if you are planning to take profits, make it realistic and with moderate risk.

Most people lose money because they believe they are more intelligent than everyone else, but if you take time to examine what is the best way to make money, it is basically not trying to earn more and more quickly than the rest.

If something has an 8% potential, don’t treat it like a 40% potential. If something can give you profit in 3 years, don’t try to sell it before, and you could always see results.

Contributed by Desiree Peralta

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