Investing is important for everyone, but you can’t just go into it blindly. Sometimes it’s important to think ahead and visualize the future that you want for yourself. For young crypto investors, this can be a confusing experience. It’s an exciting time, but one that’s also full of uncertainty.
Many people at this stage of their lives don’t always have a complete plan for how their lives will play out, and that, unfortunately, conveys to investments as well. The good news is that since you’re reading this article, you’ve made the first step toward creating those milestones, but first let’s talk about why setting cryptocurrency investment goals is important.
Setting goals is important for most aspects of our lives. These targets keep us focused on the things we want to accomplish, and that not only motivates us, but it also keeps us from flailing around in every direction.
Setting good financial milestones can help you to secure your financial future, and if managed properly they can help you achieve things like owning a home, creating a second income or even enjoying early retirement. Setting a solid target can help you to be more diligent in contributing money to your investments than if you are just casually placing a bit of your paycheck here and there.
Setting goals can be intimidating, but it doesn’t have to be. Many people are afraid of setting targets out of their fear of not reaching them, but that’s okay. Having them is important, even if you miss because that gives you opportunities to improve yourself and to learn. However, if you do find yourself falling short frequently, you may need to reevaluate them, and perhaps make them a little more realistic to keep from discouraging yourself.
First, you should think about what it is that you want to do with your life. Do you want to own a house? Maybe you want to retire early? If you’ve never done it before, then you should really take a moment to actually write out your goals. Not only can this help you organize yourself, but it can also make them more real, which has a psychological impact.
Most people set financial targets for things like paying off their mortgage, paying off their college loans, creating additional income streams, buying a new vehicle, creating an emergency fund, jump-starting their retirement or even making enough money to retire early. When writing out your plan be sure to include both short term and long term financial goals, like this.Short-term
Once you’ve identified exactly what you want, you can then begin building a portfolio that can help you accomplish these things. It may also be helpful to place a time frame next to each goal to help you decide how much money you’ll need to contribute every week or month to reach them. In the next step, we’re going to actually put a price tag on these items.
While it’s hard to estimate the long-term price of cryptocurrencies, you can estimate how much your ideal lifestyle would cost you. While it’s not really necessary to do this, it will certainly help push you out of the “dreamer” category and into the “doer” camp. By attaching a value to your goals, you are making them more concrete. It doesn’t have to be exact, but you could say for example that you need $XXX,XXX for your dream house.
If that is your goal, then you can begin creating a plan that will help you work towards it. Planning is a powerful thing that makes you more focused in every aspect of your life, and sometimes it’s useful to look at your plan from time to time to remind you of what you’re working so hard to accomplish.
Once your write everything out, your ambitions may honestly be more achievable than you previously believed, and even if they are not you can at least start taking steps to remedy that situation. How? You could consider training in a field that would provide more money and greater potential for investing.
Or, if that’s not an option, you could consider cutting some of your monthly costs in order to inject a little more money into your plan. Almost everyone has something that they can cut out of their budget. Look over your statement to see where you’re overspending. A few dollars here and there every day could actually be your dreams evaporating!
Some common areas where people normally cut back on their budgets include skipping eating out, looking for more affordable grocery options, finding a cheaper mobile phone provider, or even carpooling to save on gas. While this may sound silly, cryptocurrencies can appreciate in value very quickly, and even having an extra $100 per month to contribute to your portfolio could help you reach your goals much faster.
Many people don’t realize exactly how much of their paycheck they are spending on eating out, or on overpriced coffee, but a few dollars here and there adds up to a lot of money at the end of the month.
There are a few golden rules for setting investment goals, which we will go over shortly. Keep in mind that there are no bad goals, and you can be as unrealistic as you want. However, setting a target which you have no idea how to achieve will only frustrate you. It’s important to strike up a balance when you approach your financial goals.
It’s okay to dream big, but goals are worthless if you don’t know how to reach them. When you place a marker on your life roadmap it should be quickly followed up with a series of smaller steps which will lead to that larger achievement.
If you don’t yet know what these steps are, then take a moment to figure them out. Even if that step is only to invest X amount every month, it’s a step in the right direction, and you’ll soon be on your way to crossing that big goal off your list.
Even small milestones like keeping up with your contributions can make a positive impact on you and help you to keep going. If you’re worried about not being able to add enough of a coin to your portfolio, don’t worry. Every asset has dips, and you can easily buy in again during one of these to get a good entry point.
Once you set a target, be consistent with your contributions. From our previous step, you should’ve been able to roughly figure out how much your goal will cost. How much do you need to invest per month in order to reach that goal? However much it is, make sure that you always set it aside instead of wasting it on things that will not help you achieve financial security.
If you have a problem with overspending then you can try a couple methods to help. For example, as long as the fees don’t eat up your purchase, there’s nothing wrong with buying $100 or so of crypto at a time and then stashing it away in a safe wallet. It’s likely a good idea to do this as soon as you get paid, before you have a chance to spend it.
If you’d prefer to purchase your investment all at once, then you can take it out as cash and set it aside somewhere safe until you’re ready to buy your cryptocurrency. If you tuck it away somewhere, it’ll be out of your sight, and it won’t get spent on impulse items as easily.
There’s always somebody in cryptocurrency that will promise you a million dollars for a very small investment and no work. All of those people are lying. Avoid pump and dump schemes that will only rob you of your capital. Those people are just looking to use you to make profits for themselves. Don’t fall for it. Instead, invest in solid projects, and be patient.
Don’t flip-flop too much on your investments. Chasing profits from coins that are pumping is almost always a good way to get burned. The people doing this are professionals, and it’s likely that you can’t compete with them in this. You’d be better served to hold on to some quality projects and wait for them to mature instead.
Never put all your eggs in one basket, this puts your financial security in jeopardy. Instead, spread your risk across several different markets and niches. This maximizes your exposure, and if one of your assets takes a nosedive, you still have others to fall back on. This turns disaster into a bump in the road.