Investment Lessons from a Farmer FB

Having a long term investment is similar to a farmer having to take care of his crops. Whether you begin from planting a seed or a young tree, it takes time for it to grow into a bountiful harvest. Apart from time, you also need a lot of patience and make necessary steps to ensure the crop grows well. You need to toil the soil, add fertilizer and water it. On some occasions, you even have to build a shelter for it.

As you can see, a farmer has to go through all of these and more in order to reap the seeds that he sow. Here we look at some of the lessons you can get from the perspective of committing to long term investments.

Growth takes time, patience and effort

The farmer understands that in order to get a bountiful harvest, he needs time, patience and effort to care for his crops. In terms of investment, you must also sow your seeds, be patient and make wise decisions that will help it to grow. Over time, you will be able to reap the rewards of your labour.

The issue with investors is some of them seek fast and easy returns on their investments. They refuse to take time to nurture their investments and give it room to grow. By doing so, they disregard the risks and the consequences of the risks. They make hasty decisions which in return can only produce minimal or less than favourable investment results.

Learn and understand long term investments

Like planting a seed, a farmer understands the process behind taking his time and putting in his effort. The same should be applied to investors. Investors have to learn and understand the process behind long term investing.

Doing so not only teaches you to make better investment decisions and reduce the amount of risk involved, it also helps you to acquire better and higher returns and to become financially successful in a longer run.

Planning is the key behind every success

Ever heard of the saying, “If you fail to plan, you are planning to fail”?

For a farmer, he knows when is the best time for him to plant his seeds, toil the field, harvest and sell his crops. A farmer cannot possibly plan to harvest his crops during winter, or plant only a handful of seeds and expects the crops to fetch enough money to feed his entire family throughout the year, would he?

Growth takes time, patience and effort, but most importantly, it takes proper planning. Similar to the farmer, you must plan your financial goals. The earlier you begin to plan and execute your investment plan, the higher the returns of investments you stand to get. By planning ahead, you can avoid potential investment risks and unnecessary stress later on in life.

Planning ahead also means you have to invest wisely and you need to equip yourself with the knowledge and resources to make wise investment decisions. Investing in the wrong investment product or at the wrong place can bring more harm to your investments in the long term. In some situations, the investment may take far too long before you can see any gains, or worse off, you have to bear huge losses. Investors need to be smart and understand the consequences of investing in the wrong places. As how a farmer will not take the risk of planting his seeds on infertile land, you too should make the wise decision to plant your investments at the right place. You need to have a strategy to make sure your investments can perform well.

Besides, if you wait too long before planting your seeds, the later you stand to reap the returns. Not to mention, you may encounter difficulties to make any form of investments and this will definitely hinder you from achieving your financial goals.

Try to stick to the plan at all times

There are times when the farmer finds that his crops are not performing as well and people around him would give advice on giving up. However, through experience, the farmer had anticipated it and by default, he knows how to deal with it. Even if he does not know how to, tries to find the source of the problem, seeks advice from other farmers and those who are experts in the field and makes his decisions based on it.