Best Investment Tip ... Start Young
While you are partying in your 20's make sure you invest as well.
We are always told to save and invest but rarely told How to start. This is specially if you have just started working. Yet this is the right and best time to invest.
The first step of the long journey of investing is the willingness to save. But keep in mind that all those who save necessarily do not reach financial freedom. It is those who invest and make their money work for them too, are one's who achieve financial freedom.
It's All in The Mind
Most people have the impression that finance is difficult and confusing, but it is not. So first you have to get rid of that mental block that you do not know how to invest and hence may lose money.This is not true. The basic rule in the investment world is "Buy low and Sell High". If you apply this basic rule to any asset class stocks, bonds, mutual fund, gold, real estate etc, you will turn out a winner.
There are also many products structured for those who do not want to put lot time, efforts and hard work. Mutual funds are best example. All you have to do is invest your amount in the scheme and the fund manager will take care of the rest and help you earn good returns on your investment.
But First Start Saving
Savings is the first step towards any investment. You have to set aside a portion of your income as savings. Otherwise you will not have any money left for investment. so take stock of your income and expenses and see if and how you can maximise your savings. Remember as you grow old you will have more responsibilities and expenditures. So make the best of your youth and save as much income as possible.
Better yet make a plan. It can be as simple as setting aside a fixed portion of your income say 30-50% as savings every month. Use the remaining for your monthly expenses, this will make you a more disciplined investor.
No Lumpsum Investment
If you have just started earning it is likely that your paycheck is not very large. Don't let it stop you though. Savings and investment monthly need not be very large amount. You can set aside as small an amount as Rs 500 or Rs 1000 per month. Invest this amount through SIP or Systematic Inestment Plan which lets you stagger your investments in monthly instalments.This will make life much easier for you and may turn out a better option in the long run.
Power of Compounding
And that is because of the concept of compounding, which lets you earn interest on past interest payments or profits.
Happy Investing
While you are partying in your 20's make sure you invest as well.
We are always told to save and invest but rarely told How to start. This is specially if you have just started working. Yet this is the right and best time to invest.
The first step of the long journey of investing is the willingness to save. But keep in mind that all those who save necessarily do not reach financial freedom. It is those who invest and make their money work for them too, are one's who achieve financial freedom.
It's All in The Mind
Most people have the impression that finance is difficult and confusing, but it is not. So first you have to get rid of that mental block that you do not know how to invest and hence may lose money.This is not true. The basic rule in the investment world is "Buy low and Sell High". If you apply this basic rule to any asset class stocks, bonds, mutual fund, gold, real estate etc, you will turn out a winner.
There are also many products structured for those who do not want to put lot time, efforts and hard work. Mutual funds are best example. All you have to do is invest your amount in the scheme and the fund manager will take care of the rest and help you earn good returns on your investment.
But First Start Saving
Savings is the first step towards any investment. You have to set aside a portion of your income as savings. Otherwise you will not have any money left for investment. so take stock of your income and expenses and see if and how you can maximise your savings. Remember as you grow old you will have more responsibilities and expenditures. So make the best of your youth and save as much income as possible.
Better yet make a plan. It can be as simple as setting aside a fixed portion of your income say 30-50% as savings every month. Use the remaining for your monthly expenses, this will make you a more disciplined investor.
No Lumpsum Investment
If you have just started earning it is likely that your paycheck is not very large. Don't let it stop you though. Savings and investment monthly need not be very large amount. You can set aside as small an amount as Rs 500 or Rs 1000 per month. Invest this amount through SIP or Systematic Inestment Plan which lets you stagger your investments in monthly instalments.This will make life much easier for you and may turn out a better option in the long run.
Power of Compounding
And that is because of the concept of compounding, which lets you earn interest on past interest payments or profits.
Happy Investing
No comments:
Post a Comment