Managing your own portfolio is not an easy task. You need to keep a careful watch, focused on reaching your goals and constantly be learning how to improve. Funny thing is that you could say those exact same things about the individuals running startups these days. In fact, you should be viewing your portfolio as a startup and treating it as a business.
The beautiful thing about startups is that learning and the development of new skillsets are consistently encouraged. The environment and culture exuding from modern day startups is conducive for constantly challenging yourself to improve and perform at a high level. These exact qualities should be applied to growing your portfolio. The pursuit of investing and financial knowledge, skills and strategies should far outweigh all other portfolio related tasks. The knowledge and lessons you learn today will help create a strong platform from which you can approach future market conditions to capitalize on every opportunity available.
Every startup employee knows there’s a timeline. No business can stay afloat forever unless you reach a point of profitability. Looming deadlines helps keep you motivated and working at full speed to hit your goals on point and on time. When it comes to investing, there’s one deadline that looms above all else….retirement. Make sure you have goals set out for every couple years to ensure you are on track to hitting your retirement goals. Failing to hit your goals can help you determine where to make changes and whether you need to reevaluate your spending habits or the amount of money you save. Knowing where you are in relation to your goals at all times is a must in both the startup and financial management worlds.
“Constant Vigilance” isn’t just Mad Eye Moody’s favorite line in Harry Potter. It’s a saying every startup employee lives by each and every day. Always be looking out for opportunities, be it making your application more efficient, improving your sales funnel or creating new marketing channels from which to grow revenue. The same principle applies to portfolio management. Always know what’s going on with the markets, your individual investments and where your favorite industries are trending. Being constantly vigilant can help you find the right opportunities at the right time. There are ways to make money in every type of market and industry. Who know’s, you might get lucky and find the next Apple.
Startups aren’t just the new “in” thing for no reason. They embody the environment and culture that help individuals thrive and constantly grow into the person they hope to one day be. Those same philosophies and attitudes, when applied towards portfolio management, can yield dividends as a result of the constant need to improve. Your return might be great right now, but who knows where you would be if you treated your portfolio as a startup.