Courtesy – planview
You would be wondering what makes rich people even richer, and looking at the spending pattern of different income groups, it becomes very clear that the savings player has a crucial role. The real difference between the rich and the poor is that they spend a huge amount of share of their income on savings and education. While building wealth and preserving wealth, and passing it to the next generation is the formula for financial success, and it is surprising that less than 20% of people have a return investment plan when it comes to investing and retirement.
The paradox of human behavior is that were completely rational and incapable of planning for a major event in life, but this is usually forgotten when it comes to investing. In fact, you would find that only 1/3 of the investors have whatever return plan guiding the investment strategy and retirement plan.
Reasons you need to have an investment plan
While you are considering project management investment, it is important for you to also have an investment plan. The investment world is a huge jungle that is loaded with murky waters where the smartest and the most organized only survive and become successful while others end up being gobbled up. It prevents people from resorting to gut feelings and emotions. Instead of following people blindly, that might prompt you to make another reason. So the plan will force you to stick to a rational strategy that is underpinned by the fundamental investment principle. Some of the challenging emotions that you have to overcome while investing includes the fear of failure with a certain approach because you started it and personal matters like relationship issues at home.