Everyone has a unique attitude to money. Some people find their finances daunting, whilst others love nothing more than the excitement of a new financial venture. In any case, it’s natural to feel a little overwhelmed when contemplating a new investment.
You may be wondering what sets successful investors apart from the rest; do they make carefully calculated decisions, or go with their gut? Let’s take a look at the balance you should strike between following your head and heart when making an investment.
Listening to your head
It’s crucial not to enter any investment blind, no matter how appealing it may be. Whether you’re investing £10,000 or £100,000, the decisions you make now could affect the financial health of you and your family for a lifetime.
For this reason, it’s vital to take a measured approach to investment, carefully weighing up the risk versus reward, and accounting for any factors that could impact the current and forecasted value of your investment, such as changes in the economy or political events. What are your financial goals, and when do you want to achieve them by? By answering these questions, you can determine the level of risk you need to take to fulfil your financial objectives.
If you can afford to take a longer view on your investment, the risks are significantly lower; property investment, for example, offers long-term gains even in spite of any market fluctuations. Over time, assets such as property will appreciate in value, making them a much safer bet than speculative investment.
Following your heart
However, it would be easy to talk yourself out of any investment if you simply followed your head. Even the most sensible investment opportunities come with a degree of risk, no matter how marginal it may be. Your decision when making an investment must depend on how comfortable you are with taking risk.
The higher you climb, the fewer the branches, but it you have room for manoeuvre in your finances, the rewards can be substantial for more high risk investments. Almost every serious investor has made a few blunders along the way. However, by following your gut instinct and only investing in ventures you feel comfortable with, you can avoid common mistakes and make your money stretch further.
To determine the best option for you, it’s a good idea to complete a risk profile. Whether you’re exploring property investment opportunities or stocks and shares, this can help you make decisions that suit your personality and attitude to risk. That way, you can follow your heart, whilst following sensible steps during the decision-making process.
By choosing a credible investment company to manage your portfolio, you can ensure that your investment is secure, with the best possible chance of success. They will guide you through the options available, advise on the most suitable opportunities for your financial situation and risk profile, and give you peace of mind that you have made a well calculated investment.
Thinking of investing in property? IQ Property Investments is here to make building a portfolio an enjoyable and straightforward experience. Get in touch to discuss your finances with us today.