Measuring ROI before investment - A key that can save us.

A few years ago, I used to invest randomly in different sectors; from real estate to crypto, from gold to dollar. There was always some math in my head but doing this on pen and paper. Later I understand that I have no clue about what % I'm getting. Though ROI is a very intertrial and business term, even if I talk about it on a very personal level then I have come to realize it's important.

The truth is ROI serves as a benchmark for shaping marketing strategies, business plans, and investment actions for the future. We know the probability, we see the news, read the journals, and get the data and analysis. But measuring ROI is the best way to know about the probability. I would say, it worked for me as a very simple way to understand where my investment is going, how much I'm getting, and what I need to do next.

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I usually follow a simple technique -

ROI= Cost of Investment/Net Return on Investment ×100%

There are different other methods, some are very complicated if you don't have a business background or don't have much knowledge of it. I would suggest if you are a beginner then follow simple techniques first.

For example, if I have a $20k investment in crypto, then my ROI would be the deviation of my net return from my initial cost of investment multiplied by 100%. Now do your math.

As I said there are many other methods as well. But from what I understand, people like me only do the math in their heads and invest as well as invest in mid-term can get real benefit from this method.

• ROI helped me to develop my investment plans according to my best return. Not just do I see things as lucrative and invest in them but I do comparative analysis.

• It gives me a clear idea about my position on reaching my goal and making new plans.

• Most importantly, I became more organized and understood math better than before when I think about any investment, which is I believe a key to growth.

People like me who have different interests in different sectors and have invested capital and money in several things must measure the ROI. If you didn't do it earlier, do it now. It's possible to get the ROI from your past investment as well. I'm saying this because I got to know the comparative analysis as well, very quickly and easily, from ROI on different personal investments.

I hope this will also help you too as I get help from this simple technique.

Thanks for visiting my blog.