Money is literally on the air these days. You just need to know how to grab it. Once you get the ways you can earn money easily.
The line above looked so easy but the real life situations are not friendly at all. Sometimes, investment matters and you need to know the tricks.
This word is widely used these days. Though often misused, like if you say that you are investing for a car or holiday – then it is actually a savings plan, you are saving money for something. How is this investment plan?
Ok so briefly what it means is, investing is putting your money into a saving package for something. The time period might vary from short term to long term, and you would have an intention to earn a growth from your money. You might finance your investment with your monthly income or other sources, which is up to you. An easy example of investment is, starting to save money on the day your child is born to finance his/her college and university education.
Types of Investment
There are different types of investments. You can create plans according to these investments, and there has to be a timeframe. No one saves money for eternity; everyone targets something in the future for what they need the money for. So determine your timeframe and the risks involved. Almost every investment comes with a risk.
The Stock Market
You can make money very fast through putting them in the stock market. But you should keep in mind that you can lose them as well, which is very fast too. Many people have changed their fortune putting everything they had in stock market; that in both positive and negative way. Investment in the stock market is indeed highly volatile.
Stock Market Trends
Stock markets have trends. If you closely observe a stock exchange, you will see that a market rises up with time and stays in there for a long time. Then it goes down and stays down there for a long time, then again rises. What happen there are ups and downs in the stock markets, so invest there if the market is in the rising stage or in the risen levels. This should be considered as a long term investment vehicle, but risky involved here are pretty high.
Sharing the risk
You do have the option to share your risk with others in stock market investment. You can get this done by investing in managed funds like unit trusts, investments trusts etc. You can even link your invested stocks to insurance policies so in case anything goes wrong, you can recover your money. This carries little risk, but still is risky. We might call this ‘medium risky’.
The ‘No Risk’ approaches
And there are some approaches that involve no risks at all. You may invest your money in govt., corporate and bank bonds, money market funds, social investment products etc. Even savings accounts can serve you this purpose. But this way, you will not get rich or poor overnight.
And we’re done
Building a plan like this is often a mountain task for people and if they don’t get any guidelines, this gets more difficult. Our intention was to guide you and hope we succeeded. Tell us what you feel about this guideline.