If you also believe that investment is a complex game and it’s pretty difficult for you to ace it, it’s a myth that we are going to burst today. There are specific ways and platforms that will make it a complicated job, but we are here to help you with a few easy ones that you can do on your own. As we will focus on the beginners who are just going to start investing, those who are doing it for a longer time might find this guide a fundamental one. There are various modes and methods that one can opt for. However, the real issue starts to appear when choosing one for oneself. In this blog, we will discuss a few tips that will help you invest the money in the right places.
Start Investing Right Away
The first and foremost tip that you must not skip is that you should start investing a certain amount as soon as you start earning. It will be the deciding factor on how much wealth you will make at the end of your career. An early start for your investment will also make sure that you can compound, and it will help you increase your investments exponentially over time.
Set Up An Automated System
If you are keeping it to a manual system where you transfer a specific fund to the investment portal, there are high chances that you will not remain disciplined. We recommend setting up an automated system that will auto deduct the funds. It will not only keep you on track, but it will also take away the stress of remembering the date to make the payment. It will take away the money before you get any temptation to spend it somewhere else.
Save For Emergencies
There are a majority of people who mistook investment for savings and vice-versa. Both the terms are quite different, and we will discuss them briefly. The savings should always remain short-term where you keep it for short-term goals. Investments should remain to be long-term as these are intended to create wealth for you. If you plan to save a significant amount for retirement, we would highly recommend going for the 10% to 15% saving of your gross income.
Opt For Fixed Deposit
Apart from the point that it provides low growth, fixed deposit is undoubtedly one of the best modes of investment. It will keep your money safe, and you will get your return at a fixed rate of interest. Though the rate will differ based on the bank, we recommend taking quotations from multiple banks. You should also know that you will have to pay a certain amount as a penalty to the bank in case of early withdrawal.
Avoid The Ones With High Fees
If you are going through several funds, you must have witnessed that there is a specific fee that is charged by the portals. We would highly recommend avoiding the ones that are charging you a hefty amount. While signing, the 1% or 2% expense ratio might seem low, but it will add up to the investment and become quite a huge amount. If you are trying to get something premium, it’s obvious that you will need to manage funds for it. The best way to do it is by investing the money to get your long term goals fulfilled. For those who are focusing on any short term goal of a minimum of 5 years, investment is a better option.