An investment is an asset or item that we use to create income or wealth in the future. When a person acquires an item intending appreciation in its value in the long term like real estate, stocks or anything that has higher value anticipated that is investment.
If you are starting to get interested in investing & don’t know where to start here are the some tips that can help to start.
1. Do your own research
First of all, it’s important to do your own research to know exactly where you are putting your money, time & work. Don’t listen or don’t follow others’ judgment just because they got successful in some investment, understanding what you have and what suits you might be totally different from others.
2. Make your investment plan
Before investing, you should do some homework for investment like how much time, money and effort you can put into after putting your money for monthly expenses and emergency fund. To invest, be mindful of meeting your daily needs first.
3. Research tax implications
In every country there are different laws and rules regarding investment. Tax rules and regulations do need to be considered while investing. Researching and understanding how a country’s tax system works helps to find the best alternative for your portfolio.
4.Risk limitation
Investing doesn’t mean you always get profits, it’s a bitter truth that can be uncomfortable for you. But don’t be timid by it, but look for securities or investment that match your risk bearing capability. That way you won’t be disappointed in your investing journey.
5. Seek guidance
If you really want to jumpstart your journey for investing, researching on your own, might take time. So depending on how much time and money, you can seek help from a professional. Otherwise, having a professional to manage your investment might be a good option too.
The investing process might be scary at the start but on the way you will be understanding more and more and it will get easier.
How much money do you need to start investing?
Honestly, you don’t need to break a bank to start investing. You can simply choose a beginner friendly option to invest like a high yielding savings account, certificate of deposits (CDs), mutual fund, bonds etc. They give you the option to start a small amount of money as low as Rs.1000.
What is the best time to start investing?
There is no such time as the best time to start investing. The earlier you are to invest, the fast you can reach your financial goals. The idea of investing comes with a risk, but you get returns on your risk bearing capability, so don’t be afraid and start to act now, that way you can reach your target soon.