Phillip Sanders is a talented musician and an astute investor, who began by investing his money in Oil and Gas, and today has a vast and varied portfolio. He’s written many songs, several of which became chart toppers throughout Europe. Some of his songs, such as I Don’t Think I Will and With Her I’amare major hits.
However, Phillip Sanders is one of the most astute investors as well and isn’t just defined by his music. There are a number of interesting decisions that he took during his early ages that led him to become a highly successful investor. Here are some of the best tips that he has to share with others.
Time is on your side. If you start saving and investing now, you will have a better future. In addition, starting early will allow you to explore and discover the best investment opportunities according to your financial goals and plans. Here are some tips you can follow to invest and take advantage of your youth:
- Chart your financial goals
Before starting to invest, you should think about what you want to achieve, so that you can identify which assets and investments allow you to achieve your objectives and goals in the short, medium, and long term. For short-term goals, the investment will be different than for long-term goals.
If, for example, you save now for your retirement, you will probably invest in bonds and stocks, and you can be riskier, because you will have the time in your favor to deal with the ups and downs of the market. But if you are looking to invest for something that you want to achieve in twelve months, such as taking a trip, you will look for a product that offers greater liquidity to recover the money quickly and with little volatility.
Ask yourself what the goal is you want to achieve with that money and when will you need it so that you can make the best possible investment.
- Have an emergency fund
Having an emergency fund or a “financial cushion” is very helpful in unforeseen situations, such as job loss, health problems or unexpected expenses that require a lot of money.
Financial advisors always recommend having three to six months of savings that can pay for basic living expenses like rent, food, utilities, and more. This way you will have financial security in the face of any emergency or unforeseen event without having to go into debt and get time in your favor to solve the problem.
- Take advantage of compound interest
Compound interest is the profit that results from the interest applied to the sum of the initial principal plus simple interest; the result is an amount that increases more rapidly than if simple interest alone were applied.
- Invest in yourself and your training
Acquiring new tools and skills translates into better job opportunities and more important positions. Hence, one of the best investments you can make throughout your life is to invest in your education.
Do not forget that companies pay for your experience and for what you know how to do. If you grow personally and professionally, you will also grow financially. Remember that much of the money for your investments you get from your work.