Time is money and this remains true until today. When you are investing money, understand that not only your money is being used up, but your valuable time is also being put to use. Therefore, to determine whether you're just wasting time on an investment, calculating Return on Investment could help you eliminate investments that don't deserve your time and pursue other investments that could maximize your earnings.
Simply put, the ROI or Return on Investment is a performance measure that evaluates the efficiency of your investment or compares the returns of multiple investments. Anyone who places money for business aims to capitalize or maximize the total returns on every investments made. To make sure you're spending time wisely on investments, here are effective things you can do to minimize risks:
1) Discover and Use Win-Win Situations - Once you've discovered which investments would earn you significant returns, use these investments further to increase over time and give way to better opportunity gains.
2) Stay Away from Lose-Lose Situations - Obviously, when investments don't yield much returns, don't make it much worse by trying to risk more time and money. Stay away from bad investments and look for better opportunities elsewhere.
3) Compare risk and reward ratio - In every business, calculating the risk to reward ratio is important. This calculation it is important to compare the expected investment returns to the amount of risks you are comfortable losing to arrive at your goal results.
Once you used these three techniques in earning high rate of ROI, you'll minimize risks, save precious time and expect significant returns on your hard-earned money.
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