Investing: a sprint or a marathon?

Investing: a sprint or a marathon?

Beginner investors often get excited when faced with attractive opportunities to invest. They usually start by throwing a small amount of money (100-200 euros) in a specific asset on an investment platform such as Debitum Network. Then they forget about their initial investments and neither save nor contribute bigger amounts for further investments. It is natural to say, that the initial amount won’t create a financial miracle even if left invested for decades. We believe Investing is not a sprint, but a marathon and one should consider contributing regular amounts to create a fortune in the long run.

Do you have long term investment goals?

A serious investor will definitely have investment goals that would span a horizon of decades. They will have a plan on how to achieve their goals by mapping specific investment courses to follow, which would consist of smaller steps, such as regular monthly savings and investments into a diversified basket of assets. Let’s be realistic, a hundred euros can make you 10-15 euros a year and even if you reinvest them and the returns derived from them, it would still be meager profits at best in the long run. Take a look, at the table below and see for yourself how much you make if you throw in random 100 euros and leave for 1,5, 10 years without adding regular amounts, and what would be the results if you start with 100, 200, 500 and add equivalent amounts monthly for the same periods of time (on Debitum Network for an average interest of 10%). 

It goes without saying, that a single investment without any regular contributions will not generate the desired outcome. It looks more like a gamble than a sound strategy to make money investing. On the other hand, small regular increments of money stashed and invested will create a sizable income within a decade. 

It’s not about the size but consistency

What if you threw in 1,000 euros and left it on our platform to turn over? Would that make a big difference? Well, we did the job for you and the table below shows you that the desired outcome in investing comes when there are consistency and regularity. One should not get emotional about a one-time big amount as they will only slightly make the outcome better than a small one-time amount. 

How to create a long-term investing plan?

When you sit down to make a long term investment plan you need to consider putting in the following parts into your plan:

  • What are your expectations? (do you want to buy a car, house, store up a downpayment for a house, invest for retirement, reach a specific amount (100k euros), etc. 
  • What is your initial investment? (100, 200, 500, 1000 euros)
  • What are your monthly contributions? (100, 200, 500, etc)
  • What kind of assets you are going to invest in? (Short term: a few weeks, a few months. Long term: 5 months, 2 years, 5 years).

Long term investments require preparations, just like a long marathon does. It takes time to prepare and patience to commit to implementing your plan. 

Create saving habits and invest patiently

It takes patience, courage, and stamina to save and invest long term. Yet, you have to remember a famous cliche that ‘Rome wasn’t built in one day”. Fortunately, if you do not give up and develop strong saving habits, you will eventually see returns grow, particularly, because you can earn compound interest on Debitum Network platform. Investing is not gambling, where you can shove all-in and expect to win a substantial amount. Returns come later. However, you should remember that you earn interest on Debitum Network from day one and since most of the assets are protected under a buyback guarantee the risk that you take are very low.

Comment from Eimantas Valancius – the Head of Operations Department

Debitum Network is there to help you to achieve your long term investment targets. We have various tools such as an auto-invest plan that will save your time and do the job for you. You can invest manually too. Our assets are put into 3 categories according to risk classes. It means that whatever your risk tolerance is, you will find assets that fit your investment style, whether you are short term or long term investor. If you are interested, it takes just 1 minute to register on our platform. Then, deposit and you can invest right away. We have a special asset of the week to help you out.

Top asset of the week

The top asset of the week is from our partner and loan originator. The borrowing company is a producer of electricity which has more than 340 thousand EUR in revenue, more than 60 employees and has been in business for more than 7 years. The Purchaser is a manufacturer of petroleum products, it has more than 4 billion EUR in revenues, employs more than 1000 people, and has been in business for more than 28 years. Sounds good enough? Check out the asset and if you like what you see, add it to your portfolio right away.

Disclaimer: Investments in financial products are subject to market risk and any investment should only be done with risk capital. The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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