As i did mention Investment to be the tool for capital appreciation to meet out our long term goals,it is worth mentioning the dictionary definition,so to say:-)
The money we earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle we may like to use savings in order to get return on it in the future. This is called Investment.
To the cut the long story short,investment is a funda wherein u park your savings into places which fetch you more returns than usual.In fact,as discussed before Investment is the only way to hedge ourselves from Inflation.
Now,before we discuss as to where to invest,it is very important to know WHEN to invest?There are 3 defining rules,which i presumably copied from article or magazine:-)
§ Invest early
§ Invest regularly
§ Invest for long term and not short term.
The points are self-explanatory except the third one which would get clarified as we move to the HOW’S and WHERE’S investing.
Here are some points which i think are indispensable to investment
1.Now,Investments in whatever form they come carry a certain amount of risk-profile with them.Cos as they say “NO PAINS,NO GAINS”.I am not trying to dishearten anyone but this is a fact which one needs to keep in mind.
2.One should be specific about the long term goals without which the investment strataegy can go to drains.
3.One should try to vaguely analyse their savings and risk profiles which help in determining the WHERE to invest question.
4.It is always good to do some research into the investments we are gonna commit to instead of jus taking the specialist’s advice for it to make the sure the investment suits our needs.
5.Now,for people like me who are averse to all finance related jargon’s,it is always advisable to seek help and advice from some1 already present in the field. Or,better,Self-Learn.Internet has a plethora of portals specifically dedicated to making our money grow:-)psst.
But, the ones i will really recommend are
2)A magazine by the name BUSINESS TODAY.It has some amazing articles on the investment strategies with a supplement that showcases the “DESIRES OF THE RICH AND FAMOUS” as i like to coin it.Enough motivation to get the money growing:-)
3)This blog of course:-),cos no matter how naive and vague i might be ,i have always had more help from the people who have or who are already taking the path.So,hopefully i will be more ways than one,help realise a common dream “TO GET RICH”.
I realise that i haven even started with the heart of the matter,i.e. the HOW’S AND WHERE’S of investing,but its better late than never.Cos i feel it is very important to be ascertain of one’s needs and the some knowledge of the WHYS and WHENS of investing.
So,take a pencil and paper,and start calculating your goals,risk profiles and the hard-earned money saved.
Hopefully,by the next articles i will start with the Investment Tools.
Till then,happy saving!!!
Comments are welcome:-)
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