Let’s get one thing clear: Investing isn’t gambling. It’s a way to take on calculated risks over time to put your money to work for you. Most of the time, the higher the risk, the higher the potential reward.
But taking a risk you can’t afford is a non-starter. Just because you think an investment will make you lots of money doesn’t mean it will. Jumping in and out of the market to try and make a quick buck is a bad bet. Don’t even go there.
Instead, take a more calculated approach. Develop an investment strategy that puts your real financial strength to work over the long haul. Learn what investments make sense for you, consider the risks carefully, and take action that works for your comfort level and financial goals.
Keep in mind that investments come in low risk, medium risk, and high risk varieties. Each can serve a strategic purpose in your portfolio. Ask yourself, “What am I trying to accomplish and does this investment fit with that?” — and pay attention to the answer. Then, invest and stay invested.
There is no guarantee that any particular investment will gain value at any particular time. But in the fullness of time, an investment strategy can be a great way to reach long-term financial goals.