- Personal Finance
Investment tips for Young Adults
Investment tips for Young Adults
Life is usually good. We love to go for movies, dating, hiking, camping and other fun activities. Life is surely fun and enjoyable when it comes to our demands and wealth.
Unfortunately, the fact is that most of the young people have all of the demands and elderly have all the wealth. Teenagers prefer having a part time job, working online, writing at hubpages and maintaining websites, etc to gain some amount of online earnings. Well, if you want to enhance your income a bit more, there actually is a way in which you can grow the small amount of your earnings to something more satisfactory. Here, I am not talking about betting or gambling. I am talking about the investment in stock market.
In case you have just started earning from all the different ways to get some income, you might be thinking investment and stock trading to be some kind of dullard task, which is mostly a point of concern for all the middle-aged and old guys. In that case, I want to highlight here that stock investment can be done by anyone who has money, is extremely simple and very much similar to dating, when it comes down to comparing the fundamental rules. So, here are some basic facts and principles that comply both with investment and dating:
Returns on Risks; Be Realistic in your approach
In investment the returns are directly proportional to the amount of risk you take. For instance, in the dating analogy, what are the odds that Kristen Stewart (for males) or Robert Pattinson (for females) can accept a dinner date with you? This is actually equivalent to winning a jackpot. Isn’t it? And yes, in reality, you have very high chances of getting rejected (may be not!). But, what if your offer gets accepted, then obviously the returns would be very high!
The basic motive of investing is easy money. And, my point here is that, when you start making investments, always have realistic expectations from what you are plunging into. The more realistic you are in your approach; the better are your chances to become successful.
e.g. If you lock all of your money in a titanium clad safety vault, the risk of losing your money is almost zero, and so are any returns on that money. Now, if you invest the same money in a lottery or jackpot ticket, the risks of losing your money are very high. In fact, the chances that you will get your money back are almost negligible. But, if you win the jackpot, you have obviously very high returns.
Know your comfort level
Here comes the other very important point and that is to invest in right balance. Make the investment, which suits your demands and needs well. For this, you need to educate yourself about the market and its ways, the deals and tools regarding your perfect investment.
For instance: In order to have risk free returns, you can invest in fixed deposits. Apart from this, mutual funds also offer greater returns with some measurable risks involved.
Stock investments can work most efficiently for higher returns, if applied carefully and after a good amount of calculation, knowledge and insight. You can consider stock investment to be similar to asking your classmate for a dinner date. The risks are quite minimal and the returns, reasonable.
To know more about stocks, read this hub on Stocks basics.
Investing in stocks helps you in gaining more, without doing much work. But, that doesn’t mean that you can simply sit, relax and expect the money to flow in and fall on your lap. In reality, it is quite difficult to spend or put your hard earned money on anything without having much of its awareness, and you can not do that, just by going through your intuitions or rumors that have no proofs at all. You need to understand and acknowledge the basic nuances about investments and stock markets, their conditions, trends and latest developments as well. Once you develop this knowledge and gain confidence in your capability to invest money intelligently and genuinely, your investment will start bearing fruits on its own, and you will get more and more cash even when you are snoring peacefully at night.
Again, this comes down to the basic dating strategy. You just have to do initial homework to impress the girl. Once successfully done, you can just sit back and let the things work in your favor. Hence, it is all about your experience.
Any kind of investment, be it on mutual funds or fixed deposits or stocks or any other instrument, is almost similar to a relationship. You need to follow the fundamental principle of commitment. For instance, in a relationship you are considered to be a part of your partner’s life. Any alterations in their lives can affect yours as well, and same goes with the stocks you own.
Make the choice that suits you
Stock market investment does not have any perfect or recommended way to go ahead with. Most of the times, people end up investing in the same stocks, which market experts choose. Well, I am sorry to disturb you if you feel that this is the most happy and safe territory, but this not the solution at all. All these investments have many different parameters and attributes such as the budget limitation and planned time period, etc which can not be tracked or accounted in all the cases.
Just the way, you can not imitate a popular celebrity to have a successful dating experience. You need to be yourself. Imitating someone rarely bears any fruitful results, since you feel uncomfortable doing that, and so does your partner. Therefore, stick to your own style statement, in which you can be most spontaneous, comfortable and of course original.
All that glitters is not Gold
Whenever you date a person, you check more things about your
partner, apart from the good looks or the initial appealing factors. There are
loads of other valuable attributes, you may know later. If the person is
honest, loyal, has good morals and a strong character, then you are a winner.
Same goes with stocks too. You need to dig in and see how worthy are the stocks
you are investing in. If you get nothing, then keep checking out for something
that is real.
The best way to do this is to keep a check on all the companies, which are into manufacturing products and offering services of your interest.
For instance, if you are interested in sports, and are following the current IPL (Indian Premier League) series in India (for cricket fans), or for football lovers if it is FIFA, you can find out the companies that are sponsoring the matches, or the companies that are going to get the contract from the teams for shoes, equipments, etc. Invest in these stocks. This is the most efficient way to make the entire research work interesting for you.
In the same way, in dating, you can work on finding out what he or she really likes beforehand, without them explicitly letting you know. Work on what they like and make it special for them. If you are successful, you will certainly be one up on your competition.
In all the cases above, if you are not certain, whether
things will work or not then, doing “nothing” can be the perfect thing to do.