Introduction to Investment
Manish Choudhary is 32, married and works for a MNC. Just like the rest of the lot, he has his dreams. His dreams are no different than you and me, he also dreams to live is a plush home owned by him. He dreams to build and decorate his home with his wife and children and family. He wants to give the beast possible education to his children’s. He wants to go on exotic holidays each year and wants to make sure that he has enough funds make his life secure post retirement Investructor.
One careful look at his bank balance and spending habits, and we get the clear picture that his dreams are going to stay as dreams and the chances of them turning to reality is in oblivion. His savings pattern is just not sufficient enough to pay for his dreams. Every one has got the right to dream and dream big. But our habits (bad) holds us from achieving those dreams. The only way to achieve our dream is to create wealth. Wealth creation is possible only through wise investment. Lets discuss and understand the thought process that goes into investment and the process to create ways of wise investment.
What shall be the objective of investment?
Investment is one sure-shot process that can make you rich and will enable you to achieve your financial goals of life. The first step before you start your investment activity is to budget your expenses. You shall know the pattern of your spending. The items that makes you most greedy and items on which you have control. How much a movies to costing you each month? what dent your dinning is creating on your pocket? how irrelevant it was when you decided to buy that mobile phone last month? By budgeting your expenses you are actually putting a upper limit to all your expenses so that at the end of the month you can track your spending habits. Objective is to plan your budget and follow your plan. Buy budgeting you not only plan your expenses but also plan your savings. Unless you have savings you have no investment. Once you create your realistic budget, start following the same. You will find that you have made a big value addition to you life. You are saving, and when you see your investment grow you will feel proud of your self. Do not think, just do it, it will feel good. Take it from me. The thought process driving your investment is wealth creation for happiness and well being of your family.
What is the process of investment?
Investment has no secret formulae. The rule of investment is have the right information, plan your savings and investment, and make investment on assets. The steps involved in the process of investment is as listed below:
Budget to Save
Save and make investment regularly
Investment shall be for long term
Control your debts
Why at all we should do investment?
Ask your father and he will tell you the wisest thing he did when he started his career was to open a recurring deposit account in the bank at the start of his career. In those time investment were limited or else people were less informed about investment options and about necessity of investment. Now the days have changed, not only people has become more aware about investment but also the demon of inflation making us think more aggressively about wise investment.