Investing Money
Many people find investing hard and complex to understand, and many of them choose to leave their hard earn money to the professionals to help them invest in “things” that they know nothing of.
Retail investors on the other hand, like to DIY and choose to invest their own hard earn money their own on “things” they understand.
Equip with the right knowledge of investing such as learning how to do proper fundamental analysis and technical analysis, these DIY investors choose to take control of their finance on their own, and some even outperform the professionals.
“Know what you own, and know why you own it.”
Peter Lynch
Disclaimer: All information from my website is strictly for entertainment purposes only, it is not financial advice.
Investing
9 Steps To Start An Online Coaching or Consulting Business
Podia Review: Best Platform To Create And Sell Digital Product?
13 Steps To Create And Sell An Online Course
LearnWorlds Review: Is It Worth It? Let’s STOP Paying Extra
7 Streams of Income to Become a Millionaire in 2023 (FAST!)
28 Best Passive Income Ideas to Build Wealth While You Sleep – in 2023 (and Beyond)
How Does Your Life Change After Winning the Lottery? (The Good? The Bad? The Ugly)
7 Helpful Ways to Quit Gambling and Save Money
3 Best Investments To Build Passive Income
How To Save Money Fast With The “5-Steps Saving System”
5 Ways To Save Money For A Car (Automated)
How To Save Money On Rent (Biggest Expense)
11 Best Ways to Make Passive Income For Student (Easy Money Ideas)
5 Best Ways To Earn Passive Income for Beginners (Step-By-Step)
How to Create Passive Income With Your Expertise Today (5-Easy Steps)
How To Retire Early With $50,000 Passive Income (3 Easy Ways)
Secret Truth of Passive Income vs Active Income (Secret to Get Rich)
9 Reasons Why You Should Start Saving Money
7 Biggest Money Traps to Avoid in your 20s and 30s (Money Mistakes)
9 Secrets Of Success In Life By 21 Self-Made Millionaires
Do you need Rainy Day Fund & Emergency Fund, And What Is The One Fund for Financial Success?
7 Ways to Save Money for Your Child’s Education
9 Ways on How To Save More Money On Groceries (Better Household Savings)
10 Ways to Encourage Someone to Save Money
15 Ways to Save Money on Grocery Shopping
10 Ways to Quickly Save Money for a House
15 Good Ways to Teach Your Child How to Save Money (Age 3 to 18)
How to Prepare for Retirement in Your 20s and 30s
21 Creative Ways to Save Money on a Wedding (Beautiful Wedding on a Budget)
9 Fun Ways to Save Money as a Couple (Saving Ideas)
Investing is the art of making money using money. It is the term that an investor uses when they put their money into something that has the potential to grow over time. During investing, an investor establishes these few steps:
- Establish investment goals and objectives: Investing for passive income, capital appreciation, or retirement planning.
- Determine risk tolerance: Time horizon for the investment, risk-reward ratio, and return expectation.
- Create investment portfolio: Types of investment such as securities (stocks, bonds, options, etc.), properties, commodities, fungible investments, and nonfungible investments such as cryptocurrencies.
- Monitoring: Monitor your investment on a periodic basis, review the performance of each of your investments, and make changes as you grow your portfolio.
“Risk comes from not knowing what you’re doing.”
Warren Buffett
Types Of Investments
- Stocks: A stock is a type of security that represents ownership in a corporation. Stocks are issued by corporations and can be bought and sold on international exchanges such as the New York Stock Exchange (NYSE). When you buy a share of stock, you become a partial owner of the issuing corporation.
- Bonds: Bonds are a type of debt security that is essentially loans. The issuer of the bond is typically a government entity or a corporation that is borrowing money from the investor, with the promise to pay it back at a later date. In return for loaning out this money, the investor receives periodic interest payments.
- ETFs: Exchange Traded Fund, or ETF, is a type of investment fund that holds a basket of securities and trades on an exchange. ETFs are similar to mutual funds, but they have some key differences. ETFs are more tax efficient and have lower fees than mutual funds.
- REITs: Real estate investment trusts (REITs) are a type of investment that allows investors to pool their money to buy, manage, and own income-producing real estate. REITs are security that can be traded on major stock exchanges and offer investors high liquidity, diversification, and potential for high returns.
Finding The Right Investment
When investing it is always wise to understand your own personality and life goals.
Investors who are more risk-averse can choose to invest in things that are less risky which allows them to preserve their capital over the potential for a higher-than-average return. Investors who are in this category are:
- Investors who are close to their retirement age.
- Investors who are planning to start a family and buy a house.
- Investors who will be using their money in the next 5 years.
Investors who are willing to take more risk can choose to invest in things that are presumed riskier which allows them to have a higher potential for a higher-than-average return. Investors who are in this category are:
- Investors who are young and are not in any form of debt.
- Investors are high earners who have more than sufficient money to maintain their current lifestyle.
- Investors who have the experience and knowledge to invest in the investment they desire.
Regardless, investing is important for everyone who wants to find financial freedom in their life. Whether you are risk averse, or a daredevil, there are always some investments that will suit your needs.
“Spend each day trying to be a little wiser than you were when you woke up.”
Charlie Munger
Let’s journey to become wealthier through investing now!
Real Estate Investment Trusts (REITs)
