Automation = consistency = growth
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Everyone wants to grow their portfolio of wealth. With the demands and pressures of everyday life this can often be easier said than done.
The biggest strides you often make are due to the small things you consistently do. This is why superannuation funds exist – to automate regular savings, hands free deposits in order to provide a large lump sum at retirement. The benefit of this is that people enjoy the benefit of compounded returns (where your interest also earns interest), a larger final amount and less reliance on the government or society.
When savings is automated it generally becomes ‘forgotten' funds (out of sight, out of mind) that are able to work and compound for your long term benefit.
In order to maximise your returns you should
1 – Know yourself – your risk tolerance and goals
2 – Educate yourself in the market you want to invest in
3 – Know the businesses – their risks and benefits
4 – Ability to automate or prioritise payments (consistency)
5 – Ability to compound your returns to achieve greater growth
Why is automation important?
Automation means that it's far less likely for your portfolio to be negatively affected by those instances where life gets in the way.
Having an easy, hands free, compounding platform to grow your portfolio, will lead to faster growth over the long term. You should always review of course any business thoroughly for their longevity, all potential charges within the business or platform and weigh up likely returns based on historical data. Check out my article here that discusses Signs of Online Scams for tips in doing your due diligence.
However, the biggest determining factor in your portfolio growing is the action you take. This is YOUR future and no one else can make you take action.
I love the platforms I use to automate my portfolio growth.
I have Raiz (for Australia only) which is a fantastic fiat option to grow a portfolio of funds – very similar to retirement accounts. You can choose from 6 different portfolios such as Balanced or Aggressive. Raiz rounds up small change from every purchase on your bank account, you may add one off payments as well as regular automated deposits. Raiz also offers cash back in your account for purchases made online through their partners and even super accounts for retirement.
This last year has returned the average investor 12.4%! Funds are secure and available to request a withdrawal immediately. There are various similar microinvesting platforms available around the world – The UK has Money Box, USA Acorns and New Zealand either Sharesies or Invest Now. More information on Raiz including the link can be found here.
A platform very similar to Raiz is Amber (only in Australia at this stage) but the round ups instead go to purchase cryptocurrency automatically and regular payments can also be made from as little as $5 (note roundups are currently no longer available with plans to use a new third party to resume round ups in the near future).
In Amber, Cryptocurrency can be traded, bought, sold or sent to your private wallet as they are also a fully registered exchange. This is a great option for those people who are risk averse, just starting out or wanting to bolster their portfolio consistently from round ups or one off payments.
This is a mobile based app so best to set up directly from your phone. Click here to register directly or via the shop. A similar product for the USA only is Coinseed. If you register using the link here you will receive a $5 credit to your account.
Another option for automation and ease of use has to be the Coinbase exchange!
Coinbase is available for use in 33 countries, including America and Australia. Receive $10USD worth of Bitcoin when using my link here and depositing at least $100. A recent feature is now the ability to make regular deposits to recur at a time and amount that suits you. This is fantastic in allowing easy Dollar Cost Averaging and making sure that your portfolio easily grows hand free. To save transaction fees you can use Coinbase Pro (available in more limited countries) and also another great little free service Coindca which offers a way to purchase by marking buy orders through the day using Coinbase Pro.
Coinbase is also currently offering an airdrop for a variety of coins, including Stellar, 0x and ZCash once short videos have been watched. It's a great way to both learn and earn. You can register here.
I have other crypto and fiat based options which I use to consistently grow my portfolio that are not automatic. You can read about them here. Whatever you do, take action today. The more you delay, the less opportunity you have to compound which will affect your future wealth.
To access a simplified 3 month plan customised to YOU and your risk tolerance, budget and goals click here for my 3 month Portfolio Plan. Alternatively check out my freebies under start here for some fantastic PowerPoint Presentations to get started today!