How Small Purchases Can Make You Money

Family-Budget-CalculatorInvesting Advice – Use Your Impulse Buying Addiction to Build Your Investment Portfolio and Create a Retirement Fund

If you are searching for investing advice, as it pertains to your retirement fund, you are in the right place. Today, you are going to learn how to harness the power behind your impulse buying addiction to build your investment portfolio so that you are able to successfully create your retirement fund. According to financial experts, you will need at least 70% of the salary that you receive pre-retirement in order to live comfortably during your golden years. Of course, this figure is contingent upon having paid off your mortgage and being in the best of health. If you still owe on your mortgage when you retire, are suffering from health complications, want to travel around the world, or build the home that you have always dreamed of, your retirement fund will need to match 100% of the salary that you receive before retirement, possibly more. Regardless of whether you require 70%, 100% or 50% more than 100% of your annual salary for retirement, it takes time to save that kind of money. It is imperative that you start as early in life as possible. Today’s top-rated investing advice tip is to indulge in that impulse buying addiction that you have. However, instead of making purchases for short-term gratification, purchase investments for your portfolio that will add up to big bucks for your long-term retirement goals.

Impulse Buying

Impulse buying – retailers thrive on it, but consumers should strive to avoid it; that is, unless, it pertains to purchases that will build an investment portfolio for the purpose and intent of building a retirement fund. Based on research derived from the field of psychology, impulse buying is considered to be an addiction. When an individual makes a purchase out of impulse, the body reacts in a physiological manner, which results in psychological emotions. A rush of dopamine occurs and that hormonal rush is similar, in satisfaction, to consuming chocolate and/or falling in love. The brain, eventually, acquires the need for a “hit” of the dopamine. Happiness, self-satisfaction, and hope are often experienced as a result of the dopamine surging through the body. According to medical professionals, it is exceptionally difficult to combat an addiction to impulse buying. If you have this addiction, there is no need to fight it. It is what it is; however, it is possible to curb the addiction in such a way that it actually becomes beneficial to you. The best way to curb this addiction is to engage in impulse buying that results in the acquisition of investments. Over time, the investments that you purchase will assist you in creating a large retirement fund. As a result, you will be able to enjoy a highly lucrative retirement!

Building Your Investment Portfolio

Building your portfolio is a sound piece of investing advice that you should ensure that you adhere to throughout your lifetime. Failure to do so could result in financial strain during your golden years. Across today’s financial-based marketplace, a portfolio that is well-maintained is considered to be a vital key to an investor’s overall success. The first step to using impulse buying as investing advice to construct your portfolio is to how to determine the asset allocation that will best conform to your personal investment-related goals and unique strategies. In simple terms, the investments contained within your portfolio should be able to meet your future needs when it comes to capital and provide you with a solid peace of mind, as it relates to your retirement fund. In order to determine this, you must consider your current income, the financial responsibilities that you will have during retirement, as well as your age.

Next, you must consider your unique tolerance for risks, as it pertains to impulse buying investments. Are you willing to risk some of the money that you invest if there is the potential for a large return? Perhaps you are the type of person that experiences a great deal of stress if your investments experience a drop, even if short-term. If you are the latter, you should only invest in that which promises a high success rate and steer clear from risky investments. Additionally, if you are building your portfolio later in life, you should avoid the higher risk investments because you will not have as much time to recoup from any losses that you incur as a younger person would have.

The Final Step

Once you have determined the best way to build your portfolio for your retirement income, you should allow yourself to indulge in a little impulse buying to establish a solid portfolio; however, as time progresses and events in your life change, it is imperative to analyze and rebalance your investment portfolio. To determine your portfolio’s true asset allocation, be sure to quantitatively categorize the different investments that it includes and determine their unique values. Then, compare those values to the value of the portfolio as a whole. This is sound investing advice, because it will ensure that you reap the highest financial rewards for your retirement years. Impulse buying is not considered to be proper investing advice, on the whole. However, should you take that purchasing addiction and apply it to your investment portfolio; you are likely to reap a wide array of financial rewards for your retirement.

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