As we celebrate the strong women in our society this month I cannot help but think of the sheer determination to make things right that was required for them to achieve the remarkable changes that have taken place for women’s rights over the past 30 years.
Further to that, it was not an overnight process and a huge amount of due diligence to continue along this path of action has been required all along – and still is. As a Financial professional, I also can’t help but reflect on the great benefits that would be derived if the same determination and due diligence were applied to our financial growth.
After all, at the outset, we need to be determined to succeed and live a good life in our golden years – and it takes due diligence to ensure that we are making the right moves throughout our wealth creation journey. It is an exciting journey too and watching your investments grow can be a rewarding experience.
So, having made up our minds to succeed, what are the due diligence factors that we need to put in place all along the way?
Start early
Time and Compound Interest are your biggest friends when it comes to financial growth, regardless of the investments you choose. With interest compounding your earnings generate far higher returns and, as we well know, over time with capital constantly being reinvested your financial growth continues to accelerate rapidly.
Be patient
Be prepared to be in it for the long haul and have the patience (and strength) to see the bad times through. Financial markets continually fluctuate and this plays a critical role in the growth of investments. When markets are up values increase and the time to buy is when markets are down – ask Warren Buffet, he said it many times and he proved his point!
Be consistent and re-invest
The principle of compound interest is that contributions are made regularly and the earnings from the contributions are then subsequently re-invested thereby adding to the growth of the capital. This principle needs to be applied in all your financial investments. Be consistent with making contributions – adding to these as you grow – and constantly re-invest profits. This is how we ultimately get to be making money while we sleep, but like all other financial matters, it takes due diligence.
Be flexible and prepared to diversify
Sometimes a certain amount of experimentation is required and because of market fluctuations you need to be flexible and have a diverse portfolio. This can include investments for example in
stocks, bonds, real estate, commodities etc. Diversification helps to mitigate the impact of negative performance on some investments and maximise the high performance of others. Continual adjustment is important and as any good Financial Advisor will tell you the constant monitoring and revision of your profile is essential!
Consult the professionals
These are the significant results that can be achieved through financial determination and due diligence but it is not advised to try to achieve this on your own. Just as you would not be advised to pull your own teeth and you would naturally consult a professional Dentist, you are far better off consulting a Financial Advisor when it comes to growth through investments. The good news, however, is that I can assist you to achieve these results painlessly and with minimal effort on your behalf!
Financial discipline and due diligence may not come naturally to you but I can ensure that you are making all the right moves all the time. So, let’s talk about what you need and where you hope to be in 10, 20 or even fifty years from now! I look forward to it.
Quote
“Above all, be the heroine of your life, not the victim.”
― Nora Ephron
