Imagine your shopping for groceries without a list or buying a car without any knowledge of why you need the car. You most likely will end up making unwise purchases. In the same way, having an investment plan is no different from having a plan for anything else.
Let’s look at some tips for making an investment plan
Current financial status: Before you can get started on an investment plan, you must have a clear picture of your finances today – your incomes, assets and liabilities.
Goals: While determining your investment goals will need to take into account many factors such as your current financial status and knowledge, age, your purpose for investing, risk tolerance, etc.
Risk: All investments involve some degree of risk. In finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. So there’s no reward without risk, but based on your experience and personal risk preference, you should consider the level of risks before starting.