Time is the key to everything. It takes enormous time and effort to acquire specific skills and accomplishments in life. The same logic is applicable for investing too. The inflation rate keeps on increasing over the years. The commodities you purchased today at Rs. 100 won’t be available at the same rate shortly. Leave the product, the value of the same Rs. 100 will also perish with time.
It is a hard time. Young Investors need to take the call right now and start investing as early as possible. This can help a person to become financially independent in life. So that you need not worry later for the small stuff of money.
Here are four quick tips from our side to young investors to help financially safeguard their future:
No one knows what will happen to us in the future. But we are for sure to be attacked by the weapon of liability now or later in life. Starting investments from an early age helps one to ease pressures when the need for money occurs and can help be proactive. For example, if you start investing in your 20s, by the age of 40-50 years you must have created an enormous amount of wealth already. You need not worry about your money once invested.
The only thing is to make sure you invest in the right Company which is fundamentally strong enough to generate consistently improved earnings in the coming years. If you are unsure about the process of analyzing the Stock market/Equity, then act like a smart person. Give your money to someone expert and pay him his minimal fees which are negligible when compared to your ultimate compounded profit.
Yes. Self-investment is the best Investment in this world. You must realize that life is limited and you need to grasp as much as possible from being here. Like How Charles Munger says,” Every night when you go to bed, make sure you are at least a bit smarter than yesterday”.
Because once you are self-motivated, highly energetic and healthy, the best parts of life should arrange accordingly. Read as many fictional books as you can, to enrich your knowledge base. Try adding books relevant to your career which can help you excel in the domain faster. Do look for advanced courses in your field.
Invest heavily in yourselves. It should pay-off many returns with no doubt.
Money management is highly imperative irrespective of where ever you are right now. Handling expenses and savings with proper techniques needs to be harnessed. There is a saying “Spent like a beggar, Invest like a King”. It is as simple as that. You have to focus on your needs and not demands in life. Money is the key here. You don’t have enough money. Then what will you invest? Learn to save money from a small age.
Clearing debts and other liabilities should be the first priority. Money should be spent only on what helps us create it and not the one who keeps on taking more of it from us. Spending on luxuries is a trend these days. Again I repeat: Focus only on needs. Think from the value of the product before purchasing it. After you know the general market value of the product, look for days when the same product gets availed at a discount rate.
All these money management skills snowball over time and produce fruitful results later.
Risk has to be taken to achieve success in life. We agree with this statement but with a small correction to this. Smart do take up risks, but they are instead called “Calculated Risks”. Let’s think from the Investing perspective to make the picture more clear. If we suppose invested our whole money in gold. Suddenly gold prices slump. You go in shock as your entire portfolio is in terrible losses. You are waiting for the prices to reverse which may then too take further more time to offset the breakeven point. Hence, Your portfolio should contain all kinds of significant assets or at least diversify it with different sector companies. If at all one industry falls, at least the other one would be in positive!
Diversification is vital while performing risk management tactics.
Thanks for reading and we hope you found it helpful!
Feel free to comment below. We have pleasure in reading and responding to your opinions/suggestions/appreciations.