3 Things That Define a Successful Investment

Investments come in many different shapes and sizes. Some are met with resounding successes, and others empty bank accounts in a quick flash. It’s a risky arena, but nevertheless, with the right knowledge at your disposal you could stand to score yourself a series of well-placed investments.

But how can you land that successful investment? Does it come with great personal or financial cost, and is there anyway to mitigate all the peril that gets thrown into the proceedings?

Successful investment

Consequently, here’s a quick definition of what truly constitutes as a successful investment.

1. Expert Support

Advice from friends, family and peers can be somewhat misguided. Of course, this doesn’t mean that the information they impart to you is wholly useless, but the fact of the matter is that the support you get from an expert will far outstrip the words of people you know. They’re often good pointers to keep in mind, but not words to live by in every scenario.

Consequently, the investments that are made from a position of being informed and enlightened are, in most cases, the successful ones. Companies like RSM help greatly here; they’re a consultancy firm that will steer you in the right direction with your finances. With their guidance, it essentially becomes much harder to make a mistake and needlessly throw away your money; two things you need to counter when investing. Get that sense of direction, and great investments will be made!

2. Robust Finances

When it comes to investment, it’s often a dog-eat-dog arena. There’s no time to sit idle and worry, and many businesses are doing this today and turning their backs on investment also. Ultimately, to persevere in the investment world, you need to have a deep-rooted confidence in your finances that can’t be deterred or shaken. That self-belief will fuel you for those long-term goals and bottom lines.

If your personal finances aren’t in good shape, your investments will fall flat time and again. Before you know it, you’re stuck in a very limited financial box that includes things like debts, loans and supplements just to get by. Never invest from a position of financial weakness; that’s never a successful investment, and more so a stupid one.

Businessman analyzing investment properties

3. The Long Game

The longer the investment period, the bigger your bottom line. It’s far more advisable to pursuit a single, lucrative long-term investment than to invest in a series of smaller ones. This is because the more times that you invest, the more chances you’re creating of things going wrong and losses being made. Additionally, it’s just more hassle to maintain and manage, and you likely won’t get back as much as you think.

Wait for that golden opportunity to play the long game with your investment. You’ll accumulate more money over time from the investment and essentially create yourself a steady income. Invest in things like; shares in a company, real estate or bonds. There’ll certainly be peak and down times here in terms of how much money comes in, but the larger point here is that, overtime, these kinds of investments pay off bigger and better than small ones.

Now over to you…

In your case, what kind of investment that you deem as ‘successful’? Why? Please share your tips and insights.