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5 Profounding Investment Rules to achieve the financial success

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By Arun Dahal Khatri

To achieve financial success in life, we don't need to make any huge changes. The only strategy that We need to do is to follow these following practical rules continuously. Every rule is practical and relevant for everyone who wants to secure financial freedom. To achieve the financial goal we have to marginalize our daily mistakes and need to adopt the best and most profound strategies which We will discuss in subsequent points. 

Rule -1: Make a long-term  investment plan

Success is not a reward gathering overnight. We have to follow various steps and strategies and convert our skills into reality to achieve success. To achieve financial success, we have to make up our mind minds with the available budget. To make an investment we don't need a huge amount of money. The only important thing is consistency in the investment. You can start your investment initially from Rs 1000 which is equivalent to $10 as well. In the perspective of Nepal, you can even apply for Initial Public Offering (IPO) from the base amount of Rs 1000. Making a long-term investment plan helps us to grow our ability to think about the personal finance level as well.

Rule-2:Follow the periodic plan

Most of the world's famous investors and financial analysts suggest that people invest periodically. Here I have mentioned the practical steps and approaches regarding how to make a periodical plan for investment. In most financial markets, the 10-year investment plan is famous and profoundly used by various investors knowingly and unknowingly. To make the periodical plan We need to follow the following steps:

2a-Make a plan to invest periodically

2b-Choose the specific periodical plan.Examples: 10 years, 12 years,15 years,20 years, and more

2c-Invest continuously until reaching the final point(specific period)

The ideas seem simple but in practical life following these steps is harder for most people. Following the periodic plan is not only making the extra money periodically but also converting the time into money.

Rule-3:Adopt the rule of consistency

The most valuable word in the term of investment is consistency. Most of the investors who are currently being successful are the people who have followed the rules of consistency. The greatest all-time investment coach and pioneer of the concept of value 

investing Benjamin Graham Also believe in the power of consistency. Consistency in the investment not only increaseincreases increases your personal finance but also helps you to achieve the compound reward. Consistency is not only used in the mind of investors but also in the company. Warren Buffet has a particular ability that leads him to become one of the most successful investors in the world is he always chooses a company having consistency in earnings. The company had long-term consistency in earnings usually leads to a strong financial condition.

 ABC company Earning Per Share

 Year                                   EPS($)

2021                                 5.7

2020                                 5.3

2019                                 4.9

2018                                 4.8

2017                                 4.6

Rule-4:  Invest as you can in a continuous manner

Initiate your investment plan from now on. There is no better time than now. Most people often believe that starting an investment is one of the toughest and the hardest toughest because it needs a lot of money but you can start your investment even with a small amount of money. Converting the small into the big is one of the main mottos of investment. If you invest Rs 2000 monthly in a company giving a 15% dividend yearly then the chances of increasing your investment are 15% higher than before because you have taken the greatest step that people are unable to take.

Rule-5:Increase your investment by 10% yearly

 Rule number 5 is one of the interesting and practical rules for most of the starting investors who have applied all four interesting rules mentioned above. Increasing your principal investment by 10% yearly seems a small step but it can lead to a very huge difference. Mathematically if we see the effect of a 10% increase in the principal amount then the figure will be wonderful. Small steps of changing and adding the extra dollar ($) can make a huge difference in investment.

Year                           Principal Investment($)

2021                           29.28                  

2020                           26.62

2019                           24.2

2018                           22

2017                           20