Types of investing
What kind of investor do you aspire to be? While there isn't a one-size-fits-all approach to investing, there are strategies that can help you make investments align with your goals. It's important to distinguish between get-rich-quick schemes, trading, and speculating, which may work for a few individuals but are generally not suitable for the average person. Investing, on the other hand, requires patience and dedication but can provide sustainable returns over time.
When it comes to investing, it's crucial to have a long-term perspective. It's realistic to anticipate a minimum investment horizon of 3 to 5 years for any investment to bear fruit, and ideally, you should be willing to commit for many more years. This extended timeframe allows your investments to benefit from compounding growth and potentially yield substantial rewards.
By adopting a patient and long-term approach to investing, you set yourself up for success. It's important to remember that investing is not a quick fix, but rather a journey that unfolds gradually and consistently. Embrace the process, remain committed, and let time work in your favour.
Passive income is earned with minimal effort or ongoing involvement, such as from investments, royalties, or rental properties. Streaming income involves continuous earnings from digital services like blogging, vlogging, and subscription-based content creation, often used by digital nomads. Read more
Investing involves deploying capital into assets with a calculated expectation of generating returns over the long term based on fundamentals. Speculation, on the other hand, entails making high-risk bets on short-term price movements without the same level of underlying analysis or predictability. Read More