Define where you are and where you want to be

Before investing set personal or family’s goals

Many years ago Freud revealed, together with what others had previously discovered, that the human being isn’t the centre of anything, in fact, humanity doesn’t even know itself. He was merely referring to psychological features and to the description of the unconscious mind; however, it is also true that we don’t usually think more carefully about basic things. Probably, we don’t really know the main objectives of our lives, and therefore how our finances should be adapted to achieve them.

Although an investor expects someone to point towards the best investment plan, the truth is optimum financial plans have nothing to do with the financial or the real estate markets’ situation, what experts say nor with the opinion of a close friend that knows a lot about the stock market.

Imagine how different our dreams, goals, wishes and priorities can be:

–  A wonderful house.

-The best education for our children.

-Rich retirement.

– Time to spend with the people I love.

Inbestme’s Scope

In the Investor’s Pyramid we proposed to take into account different priorities/knowledge before starting to invest. In the pyramid’s base we can set/know your personal and family’s goals.

In the end, the best financial plan is the one based on what you really care about. The YOU has to be extensive, and it might not just include you. Depending on your situation it could reach your family and your close friends.

To actually know the reason why we start to save or invest money is very important. Most of our financial decisions are conditioned by our desire to feel happy and safe. However, everyone has their own definition of happiness and security.

Sometimes, to establish your main objectives might seem like a waste of time as you believe you already know what you want. However, this exercise can take you to realize you had ignored unknown priorities. It is also helpful in the sense we might have a very clear idea of what we really want but it doesn’t match our family’s desires. To find a balance between both positions can determine everybody’s happiness.

Therefore, it is useful to think over and decide the path you want to take and where the starting point is; always being honest with yourself.  Once this task is accomplished, you (by yourself or with some help) have to choose how to finance the path you have chosen.

Moreover, think how unhappy you would be if you worked hard over the years and saved all the money to have a rich retirement and what you really wished for was to spend time with your loved ones.

In order to follow our vision about life while saving and investing money, the first step one must take is to simply make clear where you are and where you want to be. From there it will be much easier to identify the best savings / investment plan.

Our diversified portfolios are an excellent way to begin especially if you are sure about your financial goals and needs and you’re willing to make your first steps in the world of investments.

Know your investment profile and begin investing with us as soon as possible. Time and discipline are the best allies for any investor. Inbestme combines optimal portfolios with ETFs from different asset classes and markets. You can now become a successful investor starting from 10,000 €.

Note: Some of the ideas mentioned come from a book we highly recommend checking: “The one-page financial plan: a single way to be Smart About Your Money” by Richards, Carl.

Index funds, etfs and pension plans

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