A Beginner’s Guide To Investing

To gain financial freedom, it is important to wisely manage your investments. Taking clear, consistent, and conscious decisions is necessary if you want to earn large enough returns on your investments. As per your financial aims in the long term, you need to make careful consideration of the investment plan.

 

Here are some of the most important factors you must consider before foraying into an investment.

 

  • Before making a big decision, it is important to take an honest look at your current financial situation, liabilities, lifestyle choices, priorities, etc. All types of investments involve some degree of risk. The highest the risk, the highest the return, and vice versa. Direct equity, equity mutual funds, debt mutual funds, fixed deposit, gold, real estate, national pension system, public provident fund, and senior citizen’s saving scheme are some of the most popular investment avenues in India.

 

  • You need to know your risk tolerance to find out the best asset building choices you have. For example- if you have a low-risk appetite, you can consider investing in treasury bills or government bonds because they offer guaranteed and steady returns. If you are looking for higher rates of returns, you can choose to invest in mutual funds. If you find yourself struggling to pick the best investment option for you, you can take the assistance of a professional financial planner to distribute your investment across different asset segments.

 

  • You should never risk all your investment into a single income instrument to save yourself from the inevitable ups and downs of the markets. You have to diversify your portfolio to ensure that you never lose a lot of money. If one asset category (group of investments) starts performing average or poor, you can still recover your losses with the better returns of another asset.

 

  • You must have an emergency fund to deal with financial setbacks. Situations like unemployment, pay cut, medical emergency, an urgent household repair, etc can create an additional financial burden for you. You must have funds available to cover the day-to-day ‘essential’ expenses such as rent, electricity/water ball, medicines, insurance premiums, school fees, etc for at least six months. The size of the fund must be dependent on your income, existing debts, number of dependents, etc. What matters the most is ensuring that the funds are accessible in times of a crisis so that you can easily take care of the immediate expenses.

 

  • You should stay away from credit cards as much as possible. A credit card is an exceptional tool if used wisely. Making the low minimum payments cannot help you settle your credit card bill. Until you make the complete payment, the interest gets levied on the outstanding balance every day. The high-interest rates will make you stuck in a debt-trap for a long period of time. It is highly recommended to avoid borrowing money from banks using credit cards and pay off your debts as quickly as possible.

 

Card games are growing in popularity worldwide for a number of reasons. They entertain us to the core and help us in improving our concentration and analytical thinking skills. Moreover, the game provides unlimited opportunities to earn a good amount of money.

 

There are several gaming platforms where you can play games like Poker, Rummy and Teen Patti. You can also participate in real cash games and tournaments online and win fabulous real cash prizes. Gaming enthusiasts from all over the country are playing real stake games regularly to compete against other players and earning big rewards. Rummy and Poker rules are easy to learn but practice is required to master them.

 

Unlike other investment options, making money by playing online games completely depends on the player’s ability to outwit his opponents. To improve your winning potential, it is important to learn how to make modifications in the strategies according to the constantly changing situation on the table.

 

It is important to follow a disciplined investment approach to save yourself from the lure of quick money. Your investments can give you huge returns if you put in money systematically and commit to a period of time during which you leave your investments untouched. The longer the investment duration is, the higher the potential returns are. Impulsiveness is one of the biggest weaknesses of amateur investors which often pose a big threat to their investment plans. To yield a high return on your investments, you need to have patience, the ability to control emotions, and a good understanding of the constantly changing market situations.