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Investments for beginners – Introduction

Investments for beginner

Investing money is a natural human behaviour and the main aim for investing is to building wealth for future preferences. And investing money can be done for any as buying vehicles, planning some huge start-ups or for spending in old age etc. But when you think about investing the important thing is to start early as much possible. So you can get most of the benefits in future and also can collect huge money if investing started in early age. The compound interest is the basic benefit which can you get if you start investing early. Also this is the proven fact by most of investment gurus in the world.

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  1. “The basic principle about investing is to paying yourself first.”
  2. And after paying yourself then make it regular as like on monthly basis.

Smart investments for beginners

The basic principal for investing is to cut down some money from your earning and make it save first for investing in you separate saving bank account or in any investment account. Also try to save a minimum of 10% out of your total earning. But in some cases the earning and the expenses are quite similar so the person is not able to make their savings first for investment.

In that case, they have to increase their monthly earning of that is not possible at that moment then the best thing is to cut down some expenses. Like using public transport instead of your car to save some money. Also you can carry your lunch from home instead of going subway etc. just to save some bucks for investment. Also in meanwhile, if you have some vacant rooms then you can give them on rent and there are much more ways to save money from daily expenses.

The basic rule for investment for beginners is to first pay yourself your 10% of your monthly income and then start expensing remaining 90% in your bills, food, travel etc. In this way you can invest as well as live a meaningful life.

This whole process of collecting money from your monthly income and getting some money in hand to investing for future preference is called positive cash flow.

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Important thing to be noted down for all investment for beginners is to make sure you have a 3-4 months of saving in your hands before investing money. And also make sure that saving money should be safe and not be invested. That money will be useful at many places in emergency needs like in health issues, job issues or business problems etc.

Investments for beginners

As per most of financial expert’s beginners should not invest their money in real estate, not in stocks. But instead of that you should invest some money on yourself just to be aware about the marketplace and to learn how investing money works. This is just to enhance your skills so that you can never fail in future.  And this investment in yourself is in terms of books, video trainings, courses, seminars, coaching’s. This is just to gain self-confidence and to get skills for investing money in market.

“If you want earn more than learn more.“

Investing options for beginners

After getting ready for basic investment rules, you should show some confidence in yourself and start investing money on your ideas like in your business ideas etc. This is the place where you have maximum chances of getting sure output. The return might be low in some cases but sure if you believe in yourself.

Important thing while investing in your business ideas is to starting a business in which you’re good not in which you think big money involves. If you plan as you studied or as per your interest, then success rate becomes double as compare to other business ideas in which you have to develop more skills required for that business task.

Second big investment for beginners is to invest money in stocks, real estate, buying shares, bonds, mutual funds, index fund.

Investments for beginners

Best thing to get most benefits from your invested money is to invest them for long terms. If you make a mentality of being rich in short period of time, then you might be stuck in some financial problems. Like if your bonds and funds have lower rated then need not to sell them out, you can hold them for some good rates. Chances of getting good money from investment if you plan it for long term. And that all possible when you plan investment business for long interval of time.

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Stocks market is always volatile and to get most out of it you should invest in monthly basis. And when rates changes day by day and you keep buying things continuously then chances of getting benefits will maximize.

Also one should never worried when your funds, bonds and stocks rates goes down. Also, you have opportunity to buy some more at lower prices and needed to hold them for some interval of time and wait to get hike in prices.

If you need any help and have suggestion, then feel free to comment below.

Also, read documents while investing carefully. Because stocks, bonds and funds buying market is subject to risk.

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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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