How to Create Monthly Investment Plan

Learning how to create Monthly investment plan is one of the most important things you will have to do if you want to free yourself financially. Ultimately, investing is simply overcoming a plan to take it from one place to another, which is why investments are often called investment vehicles. Without a plan, the risk of losing money increases and the risk of making money decreases, so a solid investment plan is essential for financial success.

Where do you want stay?

The first two things you should do to create your investment plan is to find out where you are now financially and where you want to be financially and in what time frame.

Many people have the financial goal of having $ 1,000,000 in their bank account. However, they discover that when they reach their goal they have $ 1,000,000 but they do not know what to do with it and they cannot be financially free.

For many people, the final destination is to be financially free. Financial freedom is the ability to cover all your expenses without having to work. To do this, you need to have assets that generate income regularly. I think that no matter what your financial situation, you can free yourself financially in just 5 years.

Being financially free means that your passive income (income for which you do not have to work) is greater than all your expenses. So, if your expenses are $ 2,000 per month, your passive income must be $ 2,000 per month or more for you to be financially free. If you currently earn $ 0 per month in passive income, then you have $ 2,000 per month to go in order to be financially free.

In order for your investment plan to have credibility, you need to know where you are financially now and where you want to be in a certain period of time. Once you know these two things, you can begin to formulate a plan to take you from where you are now to where you want to go.

Choose your investment vehicle

The next step is to choose your investment vehicle. Choosing your investment vehicle is an important decision. If you like the idea of ​​investing in real estate, then you can choose real estate, if you hate real estate and want to invest in stocks it makes no sense to choose real estate as your main investment vehicle.

Get education

The next step, and one of the most important steps, is to educate yourself. People say that investing is risky, but investing is not risky, people are risky. If you do not have financial education, then investing will be more like playing. However, if you are educated in the chosen investment field, you can increase the return on investment and decrease the risks. The more educated you are, the more likely you will be to achieve your investment objective sooner.

What do you need?

So you have already calculated that you need a certain amount of money per month to be financially free (say $ 2,000) and you want to achieve this is 5 years. Now, what do you need to get there? Let's say you have chosen real estate as your investment vehicle. If I can earn $ 100 per month from each real estate rental property I buy, I will need approximately 20 properties to reach my goal of $ 2,000 per month. I have 5 years to do this, so I need to buy an average of 4 properties per year to achieve this. Now that you know specifically what you need, you are better positioned to go out and have financial success.

Most people struggle financially because they do not know where they are currently financially, they do not know where they want to go, they have not chosen an investment vehicle and they have been educated and they have not specifically resolved what they need to achieve their goals. Because of this, People tend to float in the world of investments always looking for the next 'Important Council' that will help them get rich quickly.

If you have a plan, then the last important advice from the driver of your taxi will not matter, because you have a goal and a way to get there. So, if you want to be financially successful, then it is important that you learn to create an investment plan.

Being financially free in just 5 years is possible for anyone. No matter what your current financial situation is, you can get rich and never have to go back to work in just 5 years. You do not need a well-paid job or a plan to get rich quick, you just need real training to create real strategies to get rich.