The secret to being successful and secure at life and trade is to ensure you grow. It’s a fact that financial growth is indispensable for most people and businesses to achieve their dreams. Here’s how to ensure your financial growth is secure.
What should you do?
To simplify things, grow your net worth. The result of Financial growth is increase in your net worth. Growth is achieved by taking simple actions like growing your savings, either by spending less or by earning more or doing both.
If your able to take risks invest in the equity markets for long term growth. Do you have a good business ideas and skills to run the business? then you should start one now. It is the ultimate way one can ensure financial growth. If you want a fixed return then look for fixed deposits, bonds and other safe funds which give you a fixed return. All these will ensure your financial growth is secure.
The objective of financial growth is to sustainably have more income than you spend. From Energy Independence to Financials Independence sustainability is the key. Make investments first, before you spend. If you want something, save for it. Buy it using the returns from the investments rather than the capital itself. The more money you have, the easier it is to make more.
The simple logic of generating income from more than one source and to spend only a part of it will ensure financial growth happens. If you spend more than you have, the cycle breaks and you lose your net worth. The reduced net worth will make it harder for you to earn more. Remember, to grow organically is the key to securing your financial growth.
Ensure Financial Safety
According to Warren Buffet, there are 2 rules to be followed to ensure financial safety.
Rule 1: Never Lose Money. Rule 2: Never Forget Rule 1.
Financial loss impacts not just financially, but also psychologically, affecting business or one’s personal financial goals as well as growth. Some Investments for growth will face challenges and others reaping benefits. Both external and internal factors play a large role on your Return on Investment (ROI). So always insure yourself to protect from any financial losses to ensure financial safety.
Search New Opportunities
The game changer in financial growth is to actively search new opportunities. The world is never devoid of new opportunities if you search. Like people who stay update and learn, businesses have to keep updating themselves with new technologies and insights in their trade.
The more you search, the better your financial growth will be. Initially it will be hard, but in time after you try over and over it, will get easier for you to find growth. The people who stay ahead are always people who actively keep searching for new opportunities.
Compound Your Financial Growth
If you understand the effects of compounding, you can ensure your financial growth forever. Consider you have a $1000 today. With an average growth of 10% that $1000 will become $1100. Next year calculating the compound interest for the same growth of 10% will be calculated for $1100 from previous year which would give a growth of $1210. Approximately in 7.2 years your financial growth would have doubled. That high is the effects of compounding.
If you have any other ideas on how to ensure your financial growth is secure? Share them with Trdinoo for others to learn in the comments.