The ongoing pandemic has without a doubt affected a huge number of businesses around the world over the past 12 months, forcing many entrepreneurs and professionals to adapt their strategies to get the job done remotely. Not everyone on this earth can be expected to become a digital marketer or a professional blogger. Interested in furthering your investment portfolio in 2021? For those wondering how to continue as efficiently as possible when stuck indoors, here are some tips on how to maximize your investment potential from home, by leveraging and making the most of the wealth of digital tools and platforms out there.
|Table of Contents|
Optimizing Your Savings
A penny saved is much better than a penny earned. A pandemic will tend to force towards more spending in various ways, for example, there can be higher electricity bill, you may be forced towards panic buying etc. Stop wasting money during the pandemic – the situation not going to be normal before the next 5 years. I know, that’s not an optimistic thought, but it is a precaution to keep doing the positive.
If you can save just $200 per month, you can earn $12,000 in these 5 years. Please run a self-audit particularly of the automated payments, rely lesser on credit card and EMI.
A crucial first step if interested in investing your money is to, first of all, make sure that you have enough to invest in the first place. Depending on what it is you’re interested in investing in – whether it be something small and short-term, or more long-term and substantial – weigh up your existing financial commitments, and think about whether you can afford to put the money into a strategy. Remember, often you won’t be able to access these funds easily for a long duration, so make sure that you have an additional ‘rainy day fund’ pot available for emergency payments and alike.
If you haven’t already, there are a range of smartphone apps and services that you can leverage to get some more visibility on your bank account and your spending habits in general. Plum, for instance, provides some great visuals to help you figure out where your money goes mainly each month, and MoneyBox even rounds up incremental purchases to put into an investment portfolio on your behalf.
Smartphone Trading Platforms
A wide number of young people and tech-savvy, opportunistic entrepreneurs have been making the most of their extra time in lockdown over the past year, learning about different investment markets and putting some of their disposable income back to work for them through intuitive, smartphone trading apps such as Trading212 and RobinHood. If you’ve never invested before and are feeling a little uncertain about putting money in right away, apps like these have a simulation mode where you can test the waters.
Learning About Different Markets
Aside from stocks and shares investments, there are a ton of different asset types and investment strategies out there to get involved in, depending on factors like your preference, time, and available capital.
Don’t have time to read through pages and pages of guides, or trawl through web pages in search of the right answer? Property investment company RWinvest offer a range of different content formats depending on how you want to consume media, from podcasts to videos, to even VR viewings that detail available properties in some of the best cities in the UK.
Remember, while there is a wealth of information out there, be sure that you’re only getting it from sources that are legitimate and that you can trust, such as the ones above. Additionally, only you know your financial situation, and so be sure to think about how advice weighs up against your situation, and whether or not it’s something you can go ahead with.
Start Early and Stay Invested for a Long
CAGR stands for Compounded Annual Growth Rate. It is commonly used to understand how well a business or a profession is performing in a competitive market. You can use a CAGR calculator. A lot of such calculators are available online, choose one which can help you to get organized and plan an accurate approach.
Rebalancing and Tax Efficient Investment
Rebalancing is easy language means diversification. For example, Tom invested 50% in stocks, 30% in bonds, 10% in cash and 10% in digital methods (like domains or cryptocurrencies). Trading generates capital gains and attracts capital gains taxes. Depending upon your country, there are different tax-saving investments, sometimes aided by the Government.
Safe Spending During the Pandemic
In April 2020, the U.S. personal savings rate surged to 33.7 per cent. You should save at least 20% of your earning. But, when the earning is lower the savings towards 0% because the saved money is being utilized for building a home, improving the home, child’s education and the worst – purchasing electronics goods. There are a lot of ways to reduce spending while not becoming a miser. Most of us know the common tips 90% of us employ every day.
Should you build a home or repair it during the pandemic? Experts are saying yes. Why? Because the uncertain time is yet to face. A freshly built or repaired house will face lower maintenance in the next 5 years. Also, it is humane to give a job to manual workers.
Even if you’re among the individuals who are living on remote work or employment is the as essential worker, the ripples of the failing economics can be delayed and widespread. So, it’s the best time to proceed with caution around spending. When the effect of the pandemic will end, you may face lower earnings out of competition. It is not late to plan how to maximize the investment potential from home.