How To Become A Disciplined Investor

2019/02/10

The more you squeeze the sand in your hand, the more it goes out of your grip.
Similarly the more you chase your needs and wants with the amount of money that you have, the more it keeps on slipping away.

The need is paramount and we all understand that the needs need to be satisfied and in certain situations the wants as well, but then the pool of money that you are chasing them with need to be disciplined. You can do wonders to your money if you develop the traits of investing in a disciplined fashion right from your formation days.

Its not about being thrifty as your friends may start calling you in those days but about being Disciplined while chasing your dreams. A small amount of money stashed away daily into your piggy bank in your childhood did wonders to get you that cycle in your childhood. Now just think that with an interest or growth rate in certain instruments and with the power of compounding what will happen to your money if you start saving regularly and periodically.

To implement this habit you need to define the overheads of your family budget very clearly. The earmarking of the spending habits and the allocation once done is the biggest block that you would have removed in this path to becoming a disciplined investor. Once the spending sectors would have been identified the next step is to realign them to check redundancy in spending behavior. This will free up a significant chunk of money.

You will be surprised now to find out that you have a significant sum of free money available with you which is available and idling in your savings account.
The huge sum of  free money that you would have unearthed now from your bank balances has now to be divided into a contingency pool which is to be used in case of any emergencies.

The rest is the money that we have been talking about. Open a fixed income instrument like a Fixed deposit or a Recurring deposit in a reputed bank or financial institution and keep doing the same for every month onwards. Make sure to check the depositors to find out the best rates available to maximize your gains. You are set now on the path of a Disciplined investor.

If you are a Risk averse investor investing in bank deposits is your best bet, However if you are not averse to take risks you have a window of opportunity waiting for you in terms of returns. A disciplined investing in the form of Regular contribution to a mutual fund which has linkage to the equity market would do wonders to your investing returns if you can hold onto that investment for the long term.

The returns would be higher but the risks are also high, but then you would not mind that occasional troughs as the averaged out returns would definitely be higher in the long term. Starting anything is easy but maintaining the same behavior throughout is the most toughest thing with us individuals. Whatever be the reason you would need to show a strong will and behavior not to digress from the chosen path of being a disciplined investor as it will benefit you in the long term immensely .

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