The A-to-Z of the investment game


Investment is not just anybody’s cup of tea. Most people make use of third party agents, financial advisors or accountants to help them make investments or manage their money. But despite that, one should know how their money is being managed. You don’t have to take finance or accounting classes and become an expert. However, it is essential to have basic knowledge so that you know where your money is going and where it is being used.

Start reading to find out about the state of the market. Do a little of your own research along with getting advice about where to invest your money. Once you start reading more and more, you will gain more insight and understanding. Start using your instinct and the knowledge you have gained to put your hard earned money to good use.

Safe v/s risky investments

Investment in itself is risky. If you have a substantial amount of money saved up and you are considering investing it, make sure you haven’t put all your eggs in one basket. It is important to diversify your investments to decrease the risk as much as possible. Some investments will gain you a profit; some will leave you with a loss.

Ensuring that all your money is not invested in one place will protect you from bearing huge losses.

Quick, get rich schemes

What sounds too good to be true is actually too good to be true. Very rarely will get rich scheme actually work. Pyramid schemes are notorious for amassing a big capital and cheating people out of their money. In spite knowing all this, people still fall prey to these schemes because they want to take a shortcut and they get a little greedy.

Winning a lottery is also extremely rare. Sometimes the odds are one in thousands or even more. The money that you used to buy a lottery ticket could have just been put into your savings account.

 Debts, loans and investments

 It can be hard to juggle debt savings and investments all at the time. But even when you are paying off debt or for a loan, savings should remain on top of your priority list. Save 10% of your income, then pay off your debts and leave your expenses at the end. It might seem hard in the immediate future, but in the long term, it will help you create a secure financial future for you and your loved ones.

If you focus on debt, at the end you will have the feeling of being free of debt. But when you focus on savings as well, you will be left with the feeling of how you have money saved to fall back on.

The money you will be investing will be your hard earned money. So as wonderful as it is to listen to more experienced people, you should always follow your brain. What you understand is where you should invest. It is perfectly fine to play it safe while investing. You don’t have to be a stock market genius to invest your money. But you definitely have to be aware of where your money is going.