
23 Apr Investing 101: A Personal Guide to Investing Your Way into a Lifestyle of Choice
By Adesuwa Edokpolor – Managing Partner, SEOLAHM Consulting
One major desire for everyone is to live a lifestyle of choice –a lifestyle that allows them thrive on their own terms, whatever that may be. For some, this lifestyle of choice could mean retiring at 40. For others, it could mean being able to afford a 6-month holiday, twice in a year, doing whatever they want, whenever they want it. Wherever you are on this desired spectrum, the main goal behind living a lifestyle of choice is to have the freedom to make life decisions without stressing about the financial impact. One of the ways to achieve this, is to build wealth, and wealth building can only be achieved and accelerated through investing.
If living a lifestyle of choice is your goal, then you must be prepared to invest your way into this lifestyle. Most people think of investing as an arduous task, but it does not have to be, all it requires is discipline and adopting a systemic approach. Here are a few practical principles that can guide you:
Start with a plan:
As the age-old saying goes, “If you don’t know where you are going, any road will do.” Even if you know where you want to go, mapping out a plan will get you there more efficiently. Planning a trip is not too far off from planning an investment strategy. You must determine where you want to go and the best way to get there. Our personal needs and goals will help us determine the most conformable route to take. Everyone has a different situation; therefore, we all have different investment needs. Consequently, everyone’s plans should also be unique and different.
Begin with an assessment of your situation – What is your investment goal? What is your income and expense level? How much are you willing to invest, and for how long? In answering these questions, you can then develop a sustainable plan that aligns with your goals.
Determine the right investment strategy that suits your needs:
It has been stated many times that investing is personal. As a result, you must first determine a strategy tailored to your goals. The starting point is always to first understand your risk tolerance, familiarise yourself with the market, and be acquainted with the different asset classes, investments, and market terms. Sometimes, the volatility of the market may prove daunting to master, especially to a newbie investor. However, good research leads to good decisions. Armed with your investment plan and a good understanding of how the market works, the next step would be to decide on an investment strategy to help bring your financial goals to life.
Professional financial planners can also help you understand your risk profile. However, it is important to ask yourself, “On a scale of 0 to 10, how much risk do you want to take (0 being no risk at all and 10 being lots of risks). Once this is determined, other factors such as your income, personality type, and overall targets come into play.
Seek professional advice:
Many investors believe that they don’t need expert advice to manage their finances – this usually turns out to be a big mistake. You shouldn’t wait till things go wrong before you seek professional help – the need for a financial advisor is not only to maximise returns, but to get the best out of your investments by taking your circumstances and life goals into consideration.
Platforms like SEOLAHM Consulting offer premier financial planning advice to individuals and organizations. By seeking expert advice from professional financial planners, you get to access a suite of investment products and advisory to help you make sound investment choices and discover a lifestyle of choice.
Review and diversify your portfolio:
The saying ‘don’t put all your eggs in one basket’ applies in investing. It is advised that you spread your investments among different asset classes, geographic regions, and sectors to minimise the risk of being overexposed in the wrong investment. In addition, a good sign of a solid investment strategy is its flexibility and ability to factor in various lifestyle changes (income increment, change in marital status, etc.) that are sure to occur along the way.
While your goals may or may not change, it is crucial to continually return to your initial plan to ascertain profitability as it relates to your goals and make changes accordingly. As you continue to build your portfolio, periodically reviewing your investments and asset classes is advised.
Stay the Course
You have probably heard that investing should be long term and for the most part, that is true. However, it is essential to distinguish between time and patience. Often, the enemy for investors is not lack of time, but rather lack of patience as reaping the benefits of investing does not just happen overnight. While investing, it is important to play the long game as your chances of success increase significantly if you stay on the right course, putting you in a better position to achieve expected returns.
Overall, it is important to remember that wealth building principles are timeless. Take control of building your wealth and begin or continue your journey to a lifestyle of choice today.
Visit www.seolahm.com for more resources and information to help you on this journey to financial freedom.
About Adesuwa Edokpolor
Adesuwa Lilian Edokpolor is an experienced Banking Professional and Management Executive with over 15 years extensive experience working in roles across corporate and commercial banking, investment banking, sales, marketing, and client relationship management.
She has worked with leading financial institutions across Africa including Nova Merchant Bank, UBA Group and Zenith Bank PLC. She is passionate about driving results and she leverages her understanding of the dynamics of the banking industry to drive the development, implementation, and execution of growth strategies of these organisations.
Adesuwa is currently the Managing Partner at SEOLAHM Consulting – a boutique financial consultancy firm offering financial advisory, training and portfolio development services.
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