How to Achieve Success at Lifestyle Investing

There are simple steps you can begin taking today, to gain better control over your finances and achieve the kind of lifestyle you want. Most of us dream of earning more money, and imagine all the things we could do with some extra cash – but what we often don’t realize is that by taking a new approach to the resources we already have – goals that seem out of reach can jump closer.

The first step in building a lifestyle investment strategy that works for you is taking the time to gather information about your finances and building an accurate picture of your resources and financial obligations. Once you know what your money is doing, you can determine what changes you can make to free up cash flow.

Set Goals and Make a Plan

Next, it’s important to outline your financial goals and come up with an action plan for achieving them. Break the goals down into simple steps. Let’s say you’d like to pay for your next car with cash, avoiding expensive financing and insurance, and having the satisfaction of owning your car free and clear from the beginning. You’ll want to identify:

• How much cost do you want to take on? Do you want a brand-new SUV or do you want a lightly-used, more affordable sedan? Once you decide, write down the amount you’ll need to save. Don’t forget to add in expenses like sales tax and licensing fees.
• Your savings timeline. Look at your monthly budget and decide how much you can comfortably set aside for your goal. Then estimate how many months it will take to reach the amount you need for your purchase.
• The best savings instrument for your funds. This could be a traditional savings account, but you might want to consider other short-term investment options that could yield higher interest and help you achieve your goal sooner.

Do Your Homework at Every Step

Paying for your larger purchases by building up funds through investment is a fantastic strategy to make your money work for you. It’s wise to do your research and take some time to figure out where to put your cash – an impulsive or emotional choice when it comes to investing can end up costing you.

In addition to reading reliable books and online sources devoted to financing and investing, you can cultivate relationships with people who will help you achieve your goals. That’s not to say, people who will lend or give you money – but people who have something to teach you, who set a good example, and whose financial health and well-being can rub off on you through example and inspiration.

As LifestyleInvestor, Justin Donald says, “You’ll want coaches and mentors to help you on your path and pursuit of Lifestyle investing and living.” Donald has built the lifestyle he wanted by surrounding himself with savvy investors and following money management hacks that he in turn shares with his audience.

Think About Long-Term as Well as Short-Term Goals

In addition to breaking down your large financial goals into actionable steps, it’s smart to plan for short-term, mid-term, and long-term goals as well. Paying off revolving debt in full might be an actionable short-term goal that relieves your wallet of interest drain. Buying a car or a new house is a mid-range goal. Planning for retirement is a long-term goal, and perhaps the most important of your life.

If you want to live a comfortable lifestyle in retirement, you need to come up with a strategy for achieving that as early as possible. Decide how you want retirement to look: do you want to travel? Live near the beach? Continue to afford the items and experiences that make your life comfortable? Write it down and estimate how much you need to save. Create a plan, don’t be afraid to consider unconventional approaches – but try to keep a mixed basket to protect your investments – and stick to it. In the future, you will be grateful to yourself.

Work It