Investing in my future

Investing in My Future
Name of the student
Institutional Affiliation
Course ID- Principles of Finance
Instructors Name
Due Date
Investing in my Future
Summary
I have learned that finance is simply the management of funds. Responsible financing is following six basic principles of finance that act as guidelines for financing and investment decisions. These are; the principle of risk and return, time value of money, profitability and liquidity, cash flow principle. Diversity principle and the hedging principle I would like to venture into my businesses instead of saving for my retirement because I choose to specialize in my business ventures instead of working a full-time job in my lifetime.
Investing in my Future
Investing in a plan is crucial as it helps one increase the value of their current financial status. One can invest in multiple streams of income as a means of diversifying and growing one’s income. It also entails preparing for future uncertainties.
My Prospective Investment Goals
. My long-term financial goals as an investor are to venture into real estate as a business venture, save to advance my education, and strive towards homeownership. My ventures will be based on finance principles, such as the time value of money, the principle of risk and return, and the cash flow principle. Real estate entails building capital business and capital appreciation, and it requires time and patience. The principle of time value for money is applied where an investor can buy and hold real estate. As an investor, I look to make money and build wealth in the future. The principle of cash flow is applied when an investor can build up equity over time after paying the mortgage and operating expenses (Iron, R., 2019). I can direct the cash flow I attain from the property to my homeownership or funding my further education program. The principle of risk and return is applied when property values appreciate over time. The high risk of buying property while risking foreclosure or related risks means that I stand the chance of acquiring higher rewards in the future.
My Confidence ...