- Personal Finance
Guide to Investments: For Getting Rich and For Old Age
Okay forget about those get rich and fast schemes. I have seen people who actually make a living out of investing only and yes, the myth is true. We can get more money or even monthly income just by investing.
How do we do it? Alike other jobs, to earn a profitable income from investing, we got to work hard towards it. Unless you have a money tree at home, then you can be sitting at home and watch the figures increases by the seconds. It sounds good but let us gets back to reality. There are 1,001 ways in how to make money as an investor. Most of the time, we are just investing in financial institution but are there any other methods around?
In fact, there are many types of investments such as mutual fund, property investment, equities, stock markets and even currency exchange.
Here comes the guide to investment
Property Investment a.k.a. Real Estate Investment
Older generation always believe that property investments are the most secure and safe option to go for. Being a property investor is not an easy job. If you have no experience as a property investor, then you should take up a little reading and research on it. Always make sure you have at least an idea on how it works and what to look for.
To get started, check for the supply and demand factor. Consider the current market factor before making any investment in real estate. This is important if you are planning to sell away your property in the future for profit. A well-located residential real estate will be able to endure the cruel fluctuations in the market and continue to increase in terms of value.
Another factor for investing in real estate is to check for surrounding facilities. Areas that have all the local facilities such as hall, schools, public transport and even a small shopping district will definitely be a good choice of investment. It might not take long before the price start to rise and you will be smiling away with the nice chuck of profit (after sale profit).
At the same time, consider the options and you could even check out at the local government office if any further plans for that particular area is on the way. You might not want to invest in an area if there is no improvement until the next decade.
Investing in Stock Markets
Investing into stocks is another great method. Always keep an eye on the current news if you are planning to be a stock market investor. Make sure you have a good grip of basic knowledge for stock investments before going into one. A simple way to start is read the news and do not stop reading. At the same time, mix around with stock investors and you might just get free tips. Major events could occur and will possibly bring down a company. Keep an eye on both local and overseas news to ensure that the decision made are correct and you do not invest in the wrong company.
Guesswork is very ineffective in stock investment. Throw it at the back seat and start to focus on good intuition and solid decision-making. Have a solid comprehension of basic economic principals and start to learn about prospective companies that you might want to invest. Do your homework as the best information is when you collect it yourself and not from others’ word of mouth.
As for starters, you can start reading their company annual reports and you can even go deeper into how they operate, the types of products they offer and even customer feedbacks. With the current technologies, we are blessed with plenty of resources, which just need to be ‘dig’ up. By doing so, you are able to consider if the company could live up to their expectations and even promises not only to the customers but also to their shareholders.
Not to forget, by doing your own homework, you can easily determine the company’s staying power. How the company runs and how successful it is can easily be determine by the current economy. Check out the list below for the favorites in stock investments:
- Companies run by government: Mostly stable unless political crisis in the country
- Gasoline and telecommunication companies: Constant demand from customers will ensure the industry keep improving, stable and usually profitable
- Information Technology companies: It is a risk investing in them since there are so many of them and most important, check their track record and ensure they have operate for at least 10 years.
Lastly for stock investors, never ‘put all your eggs in one basket’ and greed is your main enemy. Always remember not to invest solely. Instead, plan to spread out your investments into several businesses. A simple fact for doing so is that if you experience loss in one investment, your other investments might profit and will be able to cushion the overall losses. Being greedy is never a wise choice for any investors. A money hungry stock investor might easily oversee the current news and economy which lead to losses in stock markets. As an investor, we must avoid such incident at all cost. In short, an investor fueled by greed will have his or her vision blinded with the power of money.
A few questions you can ask the bank before creating an account are:
- Do you provide a 24-hours toll free service for your customers?
- Do you have a limit for transaction per day?
- Does the account gives us free debit card?
Investing in Mutual Funds and Saving Accounts
This is a much more conventional way and even safer to invest. Most people even some folks believe that going the conventional way is the best. Since there is no liability and risk, this is indeed one of the ways to go. However, due to lack of so-called ‘risk’, the benefits (interest) are also much lower than the rest (best describe for saving accounts).
So how do we actually choose the right bank for example? First step will always be doing research. Visit a few local banks in your area and ask about the rates they are offering. Wait a minute! You are complaining that you hate the long queue and you got a multi-million dollar meeting in half and hour time? Well, please welcome our most used technology of the world, the Internet! Simply by using Google or even Yahoo! and you will get your answers within minutes.
At the same time, always remember to ask them what other promotions they have and can ofter to you. Certain banks offer free online statements while others might impose a small charge if you request for a paper statement.
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Investing in Currency Exchange
So what about currency exchange and how to be successful in it? First of all, make sure you know what moves currency markets. Spend times to know what are the technical factors and macroeconomic situations such as policy decisions and political events.
Next, understands the basic strategies for currency exchange. This is in fact a method to the madness. As a currency investor, you need to have a great understanding and do a lot of research on the three key factors in trading which are the carry, momentum and value trade.
- Momentum tracks the direction of currency markets
- The carry strategy oversees investors selling curries with low interest rates and buying with high rates
- The valuation strategy is all about the investor’s view of a currency’s value.
Now, start to decide on your trading strategy and take action. In another words, start to plan your trade, and trade your plan. Planning is always a part of all investment but the outcome depends highly on how we execute it.
In trading currency, it is important not to get caught up in the moment as the markets are fast pace. Instead of targeting for quick and short profit, always try to look at the bigger picture and stick to your long term plan based on your research.
Lastly, as an investor (regardless of what investment you are in), never expect to win every trade. There will be ups and downs in every investment. When you are facing risks, always take your time and consider the options. Learn from mistakes and always stick to your long term goals.
Investing in Companies
Investment facts: Education sector is one of the most stable sectors which has high demand and is not affected by the economy.
Besides that, you may also consider investing in companies. This is indeed a growing trend in various countries. Normally, it would require you some investment or advance money in order to participate.
Again, start out by doing data collection and survey. Check out the current trend in the market and try to get detailed facts about the company you are currently looking at. Alike with other investment methods, always keep an eye on the current world news. By following the news, you might get your lucky break you have always been looking for such as when the company need more investors or if the company is doing well.
With the current market now, the most stable industry is education. You could start looking at various companies that offers joint-ventures with the public to gain modal to start up a pipeline. For example, back in my country, we have company X which is actually looking for partnership with the public.
The method is easy as the public has to pump in a certain percentage of the modal to start up the business and company X will take care of the rest. They will provide basically everything you can think of and they will run the show for you. However, do not expect to see an immediate return in profit as it takes at least a year to stabilize the sister company.
Right after you start to invest and the business is running, you will get a monthly paycheck and the best part is you get paid every month without even have to sweat! This is indeed one of the most upcoming investing methods which could bring a lot of profit if you are looking for a long term investment.
#1 Investment Tip: Always start with research, followed by research and more research before investing.
In a nutshell...
Investing is a great move for all age and genders as it will guarantee your future and also your old age. Always remember the virtue of investing, 'Research first and then consider'. Never ever rush into something as you might lose more than what you can ever earn.
As you can see, there are many methods of investments and it all depends on which suit you best. Every investment has its risks and it is up to you to decide on which path you prefer. Consult your family members and your love ones before doing any investment and you could also seek for professional advice from financial consultant to ensure you are on the right path to create a more meaningful and secure life.
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