In life there are many kinds of investments. Like investing in your house by remodeling floors or investing to yourself by travelling abroad when your investment is invisible but still really remarkable. However, now I am going to talk about monetary investments.
Are investments only a waste of money or easy way to make yourself a millionaire?
Maybe they are not either of these options. However you still have to be careful when making investments because you may lose all money that you have invested if company goes bankrupt. On the other hand some people have became rich because of their good investments.
So I think that everybody who is interested in making investments wants to know how to avoid losing money and become rich. Or maybe you even want a little extra money to spend. At least I wanted to know so I learned little bit about making investments and then made a few basic instructions. So here we go…
First, why are people making investments? The answer is simple. We want to gain interest on our investment. The higher the return the higher the risk. That is also quite simple. So if you like to take a risk then you must favor higher-yielding shares. And if you are comfortable with low rate of return and don`t like risks then you have to invest in small return shares.
Second,where to invest? It depends on whether the investment is a one-time or continuous, and how much you can afford to invest. Shares or funds. Funds are more suitable for smaller amounts, for example, paying little bit once a month. Whereas bond investments and equity investments suit better to a larger amount of money invests.
Thirdly, it is reasonable to diversify your investments. It means that you must deposit on a number of different investments. In this case, individual investment losses affect less to the total return and, therefore, diversification reduces risk.
Last but not least your own interest in the investments and time that you can use affects where you should invest.
There were only few key facts that you should regard when consider making investments. If you want to learn more there are many good sites on the internet which give a lot of information on the subject.
I myself have had two funds but I have sold them at a loss about couple years ago because I wanted to travel to Thailand and I didn`t have enough money. That wasn`t so smart but I thought that my trip to Thailand was also kind of an investment. I learned many new things on that trip and get a lot of good memories. So I don`t regret that I sold them but I have decided that next time I will make a good profit. Soon I will make my own investment portfolio…
I think that it is smarter to invest in something and get profit for your money than just keep them in the bank. What you think? Have you got any investments?
Moderni rahoitus, 6. Painos 2012. Knupfer Samuli, Puttonen Vesa. Sanoma Pro Oy, Helsinki.
Sijoitusopas aloittelevalle piensijoittajalle 2013. Henri Rajala, Metropolia Ammattikorkeakoulu. Opinnäytetyö. https://www.theseus.fi/bitstream/handle/10024/57198/Rajala_Henri.pdf?sequence=1