What is Investing?
Investing is putting your money to work. You have worked so hard for money and now let your money work for you. It is basically allocating your fund towards future expectation of a return. Investment is not an instant coffee. It is a long term process where one can grow their investment by compounding the investment. So it is always better to start as early as possible. When you start early and you invest consistently you can really do good. Also you have enough time to correct your mistakes.
Why do we need to invest? --- Financial Freedom
The value of $1 had reduced as years have passed. The amount of things we had bought 50 years, 40 years, 30 years, 20 years, 10 years back has reduced. It will still reduce in coming year. Thanks to inflation.
Today, if I have a $1 or $100 or $1000 and if I leave it in piggy bank, what will happen after 20 years? Stuff I am able to buy today, I will not able to buy 20 years later with the same dollar.
This is one of the main reasons I need to invest and make some money on my investments so that I can increase the value of my $1 by beating inflation and make extra for better life.
Finding your starting point—
I started investing when I was a little and started saving money from my daily pocket money I used to get. Starting Investing is the most crucial point. One of the most important saying in Investment is to pay yourself first.
Goal:
What are your goals? How long you want to invest? 5 years, 10 years, 50 years, or for retirement.
Set goals. This will help you to find a way to achieve it.
- Pay yourself first
- Emergency fund: At least 6 month
- Invest in yourself – self-development, educate yourself; this will bring the highest return on investment. Books, Webinar, courses, college and one of the best ways is to watch you tube videos and other investment tools. Financial Education
- Change bad habits and develop rich mind set
- What you spend should be lower than what you earn.
- Set goals: This will help you to find a way to achieve your goals. try to achieve them