Adrift

Where to Start?

Let’s start from the beginning. Before deciding on the best investment for each individual, we must establish where we want to go. It seems so obvious and simple, but most people end up skipping this part and want to know immediately which investment has the highest return or the lowest risk.

Starting to invest without knowing your objectives is like getting into a car and starting to drive without knowing where you want to go. You’ll certainly end up somewhere, but it may not necessarily be where you want to be. The ideal is to know the destination (objective) so that we can determine the best route (investment) to follow.

I believe that to achieve success with investments, we must follow two simple principles: spend less than we earn and invest in products that we understand.

At the beginning, my highest priority was to save enough to build my emergency fund, which equates to about 6 months of my monthly expenses. The next step was to study and select financial products that provided me with time and market diversification.

In the next posts, I will go into more detail about my investment philosophy and how I put it into practice while living in Japan. I hope this helps you understand a little more about the investment options available to you.