Investing
Investing For Beginners - Grow YourFinancial Future One Easy Step At A Time With: Trading, Investing, StockMarket, & Mutual Funds
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Introduction
Making money is veryeasy but saving it isnt. Most Americans make a substantial amount of money ona yearly basis but dont put in efforts to save what they make. They decide tolive from paycheck to pay check and have no savings plan in place. It is like having a money tree in the backyard but not nurturing itor collecting the fruits to preserve.
This type of lifestylegives a unique thrill in the beginning, where there is a lot of money at onesdisposal but with time, the plan will simply fail. Peopl e will try hard to make enough money but wont be able to meet theirmonthly expenses.
Continuing on withthis spending habit will only leave people with no money saved up for theirretirement. So not only is it important to save money now, but also inve st it in the right places to increase its value over time.
There are manyinvestment options out there, which are great for beginners. Right from stockmarket investments to mutual funds, there are several options fit foreverybody. This book will help y ou understand each ofthese investments in detail and allow you to start investing your hard earnedmoney at the earliest.
But in order to keepthe investments going, you will have to save money on a daily basis. There is achapter on how you can do that and manage to investyour saved money in all the right places.
I thank you forchoosing this book and hope you enjoy reading it.
Chapter 1Investment And Benefits Of Investing
I thank you once againfor choosing this book and hope it teaches you a thing or two about investing.
In this first chapterof the book, we will read on the meaning of investments and why it is importantfor you to invest money in all the right places.
What are investments?
Investments refer toputting your money in a scheme, which will allow itto increase in value over time. So any investment that you make will not giveaway immediate results and will only be fruitful in the long run. You have tounderstand that your money is being put away for it to grow in value ins tead of simply lying in your bank account. To help youunderstand it better, here is the dictionary meaning of an investment:
the investing of money or capital in order to gain profitable returns,as interest, income , or appreciation in value
So investme nts are nothing but monetary speculations where you wish toincrease your moneys worth over time.
You must see a lot ofpeople around you who invest money on a monthly basis. They are doing so onlybecause they wish to have their money grow in valueover time. You also must have heard from your well-wishers that you need tosave money and then invest it on a monthly basis. These ideals are an importantpart of establishing a financial security and so, it is vital that you tooadhere to these principles.After all, you are not going to work forever and must have a consistent streamof money coming into your life after you retire. There is also a limit on howmuch you can work and to make up for the times that you dont work, you allowyour mon ey to do all theworking for you.
Importance of Investment
It is easy tounderstand that investing money is a good option for anyone but not many peopleunderstand what type of investments they have to make. There are severalchoices out there but only a few are lucrative. Theselucrative choices are discussed in detail in this book and will help you putyour money in all the right places.
Let us now look at theimportance of investing money:
Money on auto pilot
Most of us work on adaily basis and some of us work on weekends as well.We are working so hard just to make enough money and have a good lifestyle. Butit is not possible for us to rely on our monthly salary alone and need to putour money on the autopilot mode. This means that we make our money make more money. That sounds slightly impossible butthat is exactly what investments are for. They are meant to help you make yourmoney double or triple in value over time. So you dont have to worry about nothaving enough left for you at the end of the moneyand can probably take a few days off of work and still have money left with youon a monthly basis.
Gradual increase
Investments give awaycumulative benefits. This means that your money from investments keep growingover time and the int erest keeps compounding. Thatis, if you invest a certain amount of money today then not only will thatparticular amount grow in value with the addition of an interest but thatinterest will also accrue an additional interest. This form of compounding wil l make sure that you have a lot of money with everysubsequent investment. Even though it will be gradual, you will have asubstantial amount of money waiting for you by the time you decide to encashyour investment.
Retirement benefits
Everybody needs toretire at some point in time and cannot keep working forever. There will come atime when you cannot physically work for money any more and need a consistentincome to lead your day to day life. In order for that to happen, you need a re tirement plan. This means that you plan your retirement insuch a way that money keeps flowing into your account and all you have to do iskick back and relax. This is only possible if you make smart investment choicesfor yourself and consistently maintai n it to help youwhen you retire. Those who have a smart retirement plan live happily, asopposed to those that constantly worry about not having enough money when theyretire. The choice is yours you can simply save money and lead a life ofcompromise or invest the money and maintain a lavishlifestyle even after retirement.
Inflation
In this day and agewhere inflation is rife, it is next to impossible for you to lead a normal lifeand also save money for the future. If the case is so bad now then im agine what would happen in the future. You have to investyour money in all the right places if you wish to live a financially stablelife in the future. You never know what could happen tomorrow and what if yourcompany decides to downsize and send you pa cking? Youhave to be prepared for emergencies and it is especially relevant in times ofinflation. Your investments will save you and allow you to live a normal lifeuntil such time as you find another job or start making a consistent incomeagain.