How You Can Grow Your Bank Balances Bigger By Acting Now?

“Anything in excess is bad”, which is equally true in case of investments, where investors are experiencing information overload, drawing them back to make any decision at all. The biggest example of an inadvertent reaction to such information overload is letting cash sit idle in savings account. (We have already discussed the alternatives to savings and current account in our earlier post.) 

Creating investment awareness is critical, but the question that confronts us is how to fix excessive awareness that more or less works in a similar way as lack of it. Too many investment alternatives hold back even notable professionals from taking a call. At times, bad investment choices made in the past also haunt investors judgement, forcing them to procrastinate investment decisions. 

Be it too much of information, lack of time or impact of the previous decision, it is your own money that is on the losing end due to the unstoppable and irreversible function of inflation. 

If such is the case then it’s high time to come out of this inactivity and make informed decisions. Few pointers that will help you through the process are briefed here. 

1. Time to shun investment inertia - Nothing can be achieved by doing nothing, which means that letting cash sit idle in bank account just because you are not finding time is not going to take you anywhere. Rather than finding time, it is important to ‘make time’ for it and start planning. For this, you can assign an hour out from your weekly leisure time towards impending investment decisions. Set a deadline for yourself and put your surplus funds to work before it’s too late. 
2. Simplifying investment decisions - Beating inflation should be the heart of your investment decision, which implies that you do not have to get into complex financial planning to treat your surplus funds. Reviewing best of the alternatives that have a track record of better performance should be the right choice for you while the comprehensive goal planning can be done at a later stage. 
3. Annual Plan - To avoid investment inactivity during the busier times of the year, it is recommended to get an annual plan in place right at the start of a year. An annual plan will make it easier to divert surplus funds into pre-decided investment avenues. For this, investors can either seek help from a financial advisor or could simply choose the basket of products that will match risk appetite and performance criteria. At the same time, it is important to not let your portfolio be under or over diversified. 
4. Get into action- A plan in hand will allow you to systematically divert funds into chosen products, thereby, eliminating the need of redoing research and choosing products each time you have a surplus. 
5. Hunting down temptations - It is easy to get swayed away by a plethora of new products hitting the market each day while recommendations from friends or relatives might even prompt you to look away from your plan. To avoid such temptations, give time to proposed new product or recommendation to prove itself before impulsively acting on it. 

This line of action will help you to get going without giving in to another information overload trap. As Mark Twain said - “The secret of getting ahead is getting started.”

About The Author: Reenika Avasthi is associated with Inverika Investment Solutions LLP as a Content Writer and Financial Planner. She is a Certified Financial Planner and a freelance content writer in the field of personal finance. Her interest in writing and spreading investor awareness motivated her to start blogging.

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