5 tips before start your investment

1.Think long term.

Before you start investing on something, make make sure you think your investment for a long time, especially when you choose to do ownership investment. The business that you choose need to be last more than 5 years or so. If you think the business only will last for a few years, you better hold your money to invest on something else

2. Be realistic

you need to be realistic when you’re investing your money. the amount of 9 to 10 percent for a year for your return of investment will be just right amount for your investment. If the difference is too much maybe you should do more analyze on that investment.

3. Right time for right investment

Even though you need to think long term about your investment, still you need to match your timing for your need with your investment. If you need to use your money next year, then choose free risk investment so you’ll have your money when you need it without risking anything.

4. Ask first, choose later.

Remember, investment is not a gamble. You must need to know every aspect of investment you want to choose. Ask question first before making any decision. Avoid making an investment without enough knowledge or information. Ask your broker, agent, friend and google every kind of information about the investment you about to make.

5. Choose your advisor wisely

But before you choose an advisor, you need to educate yourself first. Take every grasp of knowledge on every investment that catch your intention, don’t listen too much on the advice since they’re had their own interest too. The advisor only act as a second opinion, in the end the one who make the decision is you.

Type of Investment you can choose part 1

Remember, investment is not a gambling. You need to know the reason why you take an investment. Not because it’s a trend right now or because my father or wife told me to take that investment. But the real reason why you taking an investment is because you already have enough information about the investment you want to take. You know how the system go, you know how much the return you will make in the future, and you know how much money you will spend right now and etc. So, to help you to choose type of investment you want to choose, here is the list of investment you can choose

Ownership Investment

Ownership Investment is a type of investment that usually do by a large firm by buying stock from a promising company. This kind of investment is usually analyze by an investment banker before executed. But, wait, you’re not investment banker or having a major firm? Look up for your local company, use help from business expert and then make your deal with your local company. But still it have a lot of risk, not really advice it for personal investment

Stock Market

Doing stock market is not a really different from Ownership Investment since by buying a stcok from a company will made you as an owner of the company too. Entering stock market means you need really professional help from broker since its their game you just simply “beat the market”. The risk of this investment is very high. Make sure you have enough money, courage and sanity.

Real Estate

Buying house, then sell it with higher price or you just can rent it. Real estate is a very common and popular type of investment and has a low risk except if you owned it with a mortgage. The land and building price is always having a positive trend, but make sure you calculated the depreciation.

Make a small business

Make your own business is can be a very interesting type of investment, since you can control almost everything with your own money. But, before you do this, make sure you already know what kind of business you will run. As a first step, maybe you can start your business from your hobbies. Because its usually more fun and you can do your hobby.

Go for gold

Before we use banknotes, gold is currency in everywhere and somehow, value from the gold is never gone. Buying gold is a good type of investment. The risk is very low and the price is up every time. So, it will be a good investment. I you need cash, you just can sell it fast, different if you want to sold a house which need more time.

Why you need to invest

On today world, there is no certainty in almost everything include on our job or business. Some of us maybe a salary man or a farmer or maybe a student that depend their life on basic salary keep living. But, since we know that there is no more certainty on this life, then we should prepare everything in case we can’t have enough money to support our life.

Investment means you put your money someway in the future, as a preparation for you to support your life or to increase your income. By making an investment you’re already preparing your future ahead. You’re protecting yourselves from all those kind of uncertainty. That’s the reason why you need to have an investment.

Our money is having its time of value. One dollar from today don’t have same value anymore in the future. Each and every day, the value of our money is more and more diminished and it’s getting lower, but contrary with the money value,  the price always getting up without we ever realize. Why this is happen? Inflation, tax and depreciation, without realize it or not, is something we can avoid.

Because of those variables, your money is devaluated and the price of everything is higher every day. And because of that reason too, making a good investment will help to set up your future. Having a good a good amount of cash for your future is good, but inflation is devaluated its value. To fight it, you need good investment that give the return on your investment bigger that that three variable.

Some people invest their money on property and some other are investing theBr money on stock and bonds. There’s many option you can choose to invest your money but you must remember the risk that might you have on investing your money.  Remember, investment is not a gambling. You need to get enough information about investment that you choose.

So, from our conclusion, the reason why you need to do investment is because there is no certainty on your income in the future and if you have enough income, on cash, the value will be diminish every day! That’s why you need to put your money somewhere in the future by doing an investment on something.  But, what is that something? We’ll talk it later. Stay awesome!

From investing for dummies by Eric Tyson.