Biggest problem with us, is that we think there is a lot of thinking and analysis required behind investing in an asset. While it is true that analysing is important, it’s most important to not get into an “Analysis Paralysis” mode. So Automate your investments!
And the key to investing for a salaried person is through “Systematic investment plan”. This plan is advertised for Mutual funds, while this is so true for any asset. Mutual funds, gold or any other financial instrument. This systematic investment plan provides many advantages including cost averaging as seen big time in “Mutual funds sahi hai” advertisements.
The biggest advantage with Systematic investment plan for me is the ability to automate the periodic investment. This means there is no need for any action from the investor and all it requires is money in bank. This completely eliminates the “Analysis Paralysis” scenario which is what I am seeing mostly with my friends/relatives these days.
There are way too many platforms available now for automating your investments. Don’t spend too much time find the best platform, because there truly isn’t one best here. Identify platform which charges you least, talk to a friend who does these and invest in the same platform. Again avoid “Analysis Paralysis”, pick up the phone call up a trusted knowledgeable friend and never fall for complex products.
Finally, you can even automate your expenses 🙂
