Many people begin to view investment as the next step after obtaining a stable job with fixed income.
A successful investment in UAE
Many people begin to look at investing as a next step after obtaining a stable job with fixed income, but before starting any investment you have to know some basic steps that must be taken before starting investing in order to achieve your desired financial goals.
Here are the 9 most important steps to start a successful investment in UAE
Pay off the credit card debt
There can be no investment strategy that will pay off, if there are debts on the credit card. As the interest rate on the amount owed on the credit card is very high and it may eliminate the profits of the realizer from the investment.
Create a fund for financial emergencies
It is important that you have a special fund (savings) for emergencies that suddenly require liquidity, in order not to resort to liquidating your investments to obtain the necessary cash, and usually the value of these savings is equivalent to three to six months of the value of your expenses.
Create an investment plan
Before making any investment decisions, evaluate your financial situation – especially if you haven’t previously prepared an investment plan. The third step to successful investment is good planning, where you define the desired goals and the degree of acceptable risk – either on your own or with the assistance of a professional (consultant) person.
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Determine the investment goals
Some start investing without asking themselves what is the primary goal of investing? As the importance of this question lies in that it determines the type of investment required and the period of time required for investment to achieve the required goals by choosing the appropriate investment tools.
Determine the required schedule
There are no short cuts to make money and build wealth, but it takes more time and learn technical and financial skills that help you invest correctly and reduce mistakes. Do not be hasty in your decisions and be patient and well-planned and set a schedule for his investment strategy so that you can choose the appropriate investment tools.
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Your ability to take risks
It is a good idea to determine your ability or willingness to take risks before starting any investment. This step avoids you investing in high-risk instruments even though you are not prepared to deal with this type of risk, and also if you invest in low-risk instruments and you want to take a high-risk investment experience. In both cases, you may experience a lot of frustration and tension because the investment tools do not match your capabilities and your real ability to take risks.
Diversification between different investment tools
The performance of most of the investments changes up and down under different market conditions. Conditions may cause one of the investment classes to rise while negatively affecting another category, so it is preferable that your investment portfolio be a variety of tools, which reduces the risks.
Add some modifications to the wallet
Your investment portfolio must be flexible throughout your investment career, amenable to reallocating assets in order to restore balance and avoid losses. And to reach the appropriate level of risk, as many financial experts recommend that investors rebalance the portfolio at regular intervals.
Follow the events associated with the markets
Markets are volatile due to new financial events and decisions related to these markets. So you have to be prepared to make some adjustments to the components of your investment portfolio, in order to suit the current market situation and achieve the closest acceptable result of investments during the necessary time periods.
Conclusion: All investments that are suitable for you are within the framework of the required goals or risks.
For example, if you want to take a high risk where high profits are expected, then buying securities – such as stocks, bonds and investment funds – is appropriate for you, while investing in insured bank deposits with fixed and specific profits is almost proportional to individuals who avoid risks.