Investment Plan

"The individual investor should act consistently as an investor and not as a speculator."

Ben Graham

By now, we have understood various aspects of financial freedom such as: Short term goals Long term goals Retirement planning Savings Expenses Insurance

All that is now required is to combine all of them together to get the bigger picture. Now that we know all factors contributing to our financial freedom, next step is to prepare the investment plan.

In order to do so, we have to follow 4 steps:

Step 1: Identify Financial Goals Financial goals comprises of of two main thing- increasing assets and reducing liabilities. Both include short-term and long-term goals. We identify our future cash flow requirement and accordingly plan for retirement. Step 2: Identify Investment Amount After we have identified our long-term and short-term goals, we arrive at a total figure we need to save and monthly amount we need to contribute towards investments in order to reach the final corpus. Step 3: Identify Investment Options After we have arrived at monthly investment amount, investment options needs to be decided. Investment options depends on our time frame, risk tolerance etc. such as fixed deposits, mutual funds, bonds, gold, real estate etc. Step 4: Start Investing! We have decided the amount to invest and we have where decided to invest, all that is left is to start investing! Remeber, earlier you invest, less you have to invest and more you earn.