Point: Many people have a plan in place to grow financially. Most people have an ultimate goal in mind about where they want to be, but upon planning they forget to include an important preparation step: investing.
Advice: If you are having a difficult time achieving your top financial or career goals, try incorporating an investment plan in your strategy.
So, why invest?
In order to build wealth, advance your career, or grow personally you need to invest time and resources. If you want career advancement, you may need to obtain a certification or graduate degree, combined with your years of experience in the field. If you want to launch your start-up company, the bank will ask you how much of your personal money you plan to devote to the cause.
Investment requires time, dedication, flexibility, and a plan. Here are a few investment principles to get you started.
- Have a clear understanding of your goals: Most people want to build wealth but can’t tell if their plan is working. In order to benchmark success your goals have to be specific. Your goal should list how much wealthy to you expect to earn over a specific timeframe.
- Set realistic expectations: You will not be a millionaire overnight. You may not become a millionaire in the next five years if your plan does not logically set you in a place to achieve that goal.
- Research: Understand what is needed to achieve your particular goal. What tools and knowledge are required? How long will it take you to get to there? What risks can you comfortably accept?
Challenge: Try incorporating an investment strategy in your plan of action. Before you begin do an SWOT analysis. SWOT assesses your strengths, weakness, opportunities, and threats.
Crystal Francis is part of the GovLoop Featured Blogger program, where we feature blog posts by government voices from all across the country (and world!). To see more Featured Blogger posts, click here.
Crystal,
This article couldn’t come at a better time, the new year! Thanks.
I know that most people I talk to contribute 5% or less to TSP. I would like to see others consider up to 10%. How do you view the TSP as an investment ?
I wrote http://www.blogher.com/fiscal-fidelity-0 a couple of years ago.
Junebfl your are correct, individuals should progressively increase their investment.
There are a few reasons why people choose not to invest more in the TSP fund:
1. They feel they have a better handle at investing on the outside
2. They know nothing about investing, period
3. They can figure out a great strategy or what funds to consider.
4. Retirement is too far in the future for them to see the point
For those who want to have a better financial future upon retirement they should look to increase their TSP contributions. The second step requires an understanding where to put your money, and how much of the investment to spread over the different funds.
For those who have a basic understanding of TSP investment check out the article below for advice on how to allocate your invest in the various funds.
http://www.fedsmith.com/2014/06/13/how-should-i-allocate-my-tsp/
Junebfl your are correct, individuals should progressively increase their investment.
There are a few reasons why people choose not to invest more in the TSP fund:
1. They feel they have a better handle at investing on the outside
2. They know nothing about investing, period
3. They can figure out a great strategy or what funds to consider.
4. Retirement is too far in the future for them to see the point
For those who want to have a better financial future upon retirement they should look to increase their TSP contributions. The second step requires an understanding where to put your money, and how much of the investment to spread over the different funds.
For those who have a basic understanding of TSP investment check out the article below for advice on how to allocate your invest in the various funds.
http://www.fedsmith.com/2014/06/13/how-should-i-allocate-my-tsp/