Not yet even half-through the book and I felt like I have absorbed a lot of energy. This chapter have sharpened further my thinking about investing. From the statement of the chapter’s title itself, I realized a lot. “Investing is a plan, not a product or procedure” was a title that really makes sense.
As I read through the chapter, a lots of stories are brought upon by the author regarding the wrong perception of people in investing. It was in this chapter that I learned thoroughly the need to have various types of investments. Everyone of us have differences when it comes to handling money, that when we arrive at certain point in life that we decide to invest, we are puzzled out on where to start.
The common mistake everyone do in investing is that they are doing investment procedures yet they fail to figure out first what they need. A lot of people do trading yet they do not have plans yet on what to do with the earnings from their activities. Many decide to lend their moneys not thinking that they would have a need for money some time in the future.
Having a plan in investing is a necessity. There are a lot of investment procedures and tools to earn from your investment but what more important is the plan. Every one of us is unique that every one of us might not use the same investment tool to attain our desired financial capability. Once we have reached a plan with our money to put into investing, that is the only time to decide the investment tool to use in attaining the plan. There are a lot investment tools in the market that could help you attain your financial goals.
The variety of those investment products was made not to complicate investing but rather because there are people who could make use of the product to attain their plans. One product might not be suitable for you but might be the one I am looking for. We cannot just emulate someone we knew who have earned a lot because we have a different lifestyle and needs from that person.
We have to evaluate ourselves, then determine our goals before using any investment tool out in the market. There is no definite investment advice we can count on because everyone of us do not have a definite financial needs and goals in the first place. If ever someone recommended an investment proposal to you without even knowing your current financial plans and what you desire, then think twice. You may be fooled around in the end.