Investing In My Future

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Investing in my future

There are different ways that I can use to invest in my future. The choice of the one to use will greatly depend on my expertise, belief that it will work, and ability to finance that type of investment. The three methods that I am likely to utilize when deciding on how to invest in my future include saving, investing in stocks, and entrepreneurship. I have chosen the three methods of investment in my future because I believe diversification helps in reducing the overall risk involved in investment (Graham et al., 2001).

Saving

I would like to create a fixed deposit account where I will be depositing money. The savings will run until my retirement. This is to ensure financial independence even after I am done working for a salary. I will save in a way that I am able to receive a constant amount of money at old age. With a constant income, I can set aside a certain amount of money to be saved every month (Graham et al., 2001). This can be deducted directly from my salary. Within years, I will have saved enough to take me through my old age.

Investment in stocks

There are different company stocks that one can buy in the stock exchange market. I will have to analyze the market well to see the stocks that are worth my money. Not all the stocks will have good value in future. The analysis will determine whether I will have enough money in future or not. The choice of the company to buy the shares from also determines whether my money will grow or not. With proper analysis of the stock market, it is possible to create enough wealth for the future.

Entrepreneurship

Getting resources to start a new business is also another sure way of investing in my future. I will need to analyze the market in order to identify gaps that exist. To feel the gaps, I will have to get resources and coordinate them to create wealth in form of profit. When properly handled, this can be my source of income in future and to my children.

The best method I can choose among the three is saving. This is because I believe it is a sure way of ensuring that you have enough money to take you through the time after retirement. With a job until retirement, I believe that it is possible to set aside a certain amount of money that I will be saving monthly. The other methods involve a lot of uncertainties that can still lead to a lot of losses. Money saved in fixed deposit accounts will be available to me after the set period. This means that I do not have to worry about any uncertainties that may affect my investment (Ryan, 2008).

The most challenging investment method among the three is entrepreneurship. It requires personal commitment to work well. Since I have a full-time job, it will not be possible to focus on the investment and this can easily lead to its failure. Analyzing the market to find gaps that one can fill is not an easy task. I will need expert opinion on how to identify such gaps in order to create wealth for the future. Since it is a long-term investment, it may not be possible to run it alongside my own job (Ryan, 2008). Running a business also requires skills that I may not have as a person. In general, entrepreneurship involves a lot of risks that require a dedicated person to overcome.

Overcoming the challenges will mean that I try to create as much time as possible to focus on the business. I will also enroll for short course that can help to sharpen my skills on business management with an aim of increasing wealth creation. I will also learn how to deal with the risks involved in entrepreneurship.

Works cited

Graham, Benjamin; Dodd, David (2002-10-31). Security Analysis: The Classic 1940 Edition (2 ed.). New York; London: McGraw-Hill Education. ISBN 9780071412285.

 Jacques, Ryan. "Kelly Calculator Investment Tool". Archived from the original on 2012-03-20. Retrieved 7 October 2008.