2021 is here! Wow. Can you feel it? A new year brings a sense of renewed hope, dreams, plans, and expectations. And after a year like 2020, everyone will have certain expectations and goals they’ll want to accomplish in the next 12 months.
People make wishes, big plans, write down resolutions (and forget about them 😅), but it’s time for new beginnings and new commitments towards your goals. Whether you want to change careers, achieve personal goals, start a family, or get in shape, it’s essential to visualize your 2021 objectives and plan how you will achieve them.
And to help you on your journey, we came up with 3 different investment plans you could follow to build wealth towards the financial future of your dreams. These plans are flexible, meaning you can adapt them to your financial reality, but in all honesty, they are a better fit for those who are taking the first steps in investing.
Here are 3 investment plans you could follow to start 2021 strong:
#1 The novice
If you don’t have much experience but are keen to start investing, this is the plan for you.
Invest €100 in January and again in February to start experiencing how it feels to invest. Take the time during these 2 months to research more about your preferred investment options. Do your due diligence and understand the risks, and enjoy being a first-time investor. Time to put your feet in the water, young padawan!
By March, you should have 2 months’ experience and research under your belt. Your confidence will start to build along with your wealth. The next step is to raise investment amounts every two months. If you are a bit strapped for cash, you can try our top 10 ways of increasing your savings and go for €200 in March and April, €300 in May and June, all the way up to €600 in November and December.
Remember: These amounts are flexible, so you can choose any total amount that suits your financial reality. Following the example above, if you invest in a solution like Bondora’s Go & Grow, you should have invested €4,200 and earned more than €100 in interest by the end of 2021.
Now that the playing field is determined, all you have to do is keep learning and investing, adjusting the strategy to your investment capabilities. You will start to see the compounding snowball effect taking place!
Go & Grow is an excellent option for beginners as it’s super simple to use! Here are some of its main benefits:
- Up to 6.75%* per year net return
- Very user-friendly
- You can begin with as little as €1
- Zero annual management fees
- You can create a goal and keep track of your progress
#2 The analyst
This is an investment plan for those already a bit more comfortable with investing and can easily predict their income throughout the month. It’s more suitable for people with long-term, stable jobs whose monthly salaries aren’t likely to decrease dramatically. They are better equipped to track their cash flow to calculate how much they can save each month and use a good portion of their savings for investments.
Let’s say you earn €3,000 per month and save a whopping 50% of your income every month. You could then invest 2/3 of these savings, or €1,000, every month until the end of the year. You would end up with €12,000 invested and over €400 accrued in interest during the year (if you’re investing with Go & Grow). Not bad at all! You can also adapt the monthly amount to your reality: Keep the logic, but change the savings percentage and the monthly investment amount.
#3 The extreme saver
This plan is for those who want to take their investment plan to the next level. Are you ready? Great! You’ll be aggressive and raise the stakes, but you’ll also calculate your moves for maximum effect. You will enter an extreme savings mode, cut out all unnecessary expenses, track your account movements, and invest everything you can spare. Some people in the „Financial Independence, Retire Early“ movement aim for saving rates going all the way up to 70%!
You don’t need to go that high, but the goal is to maximize investment output and yields. However, don’t do that before considering investing in an option with fast liquidity. So if something happens and you suddenly need money, you can access it easily.
Go & Grow is an excellent option for that 🙂 We won’t suggest any values here as it will heavily depend on your income and savings rate. Still, one more thing to take into consideration is that this plan might work better, or at least make you feel safer if you have already built your emergency fund. This can save you from eventual hardships without you having to cash out from your investments in emergencies.
And there you have it! Choose one of these 3 investment plans (or create your own), adapt during the year, and you’ll be well on your way to having a successful financial 2021.
