Skip to main content

4 Best Investments To Make In 2018

It’s the dawning of a new year and you  finally  have some money to invest. Perhaps you just got a raise. Or, maybe an end-of-year bonus is burning a hole in your pocket. Either way, you need to be smart about investing if you want those extra dollars to count. Shutterstock The problem is, you have no clue  where  to invest your cash. While you’re aware of the myriad investing options available, the sheer number of possibilities is overwhelming. In the investing world, this is called “paralysis by analysis.” You spend so much time analyzing your options that you wind up putting it off and never investing at all. And eventually, the extra cash you set aside gets consumed by bills or unexpected expenses. In other words,  life happens. 4 Investments You Should Absolutely Make in 2018 If you want to make sure your extra cash doesn’t disappear, you need to invest it right away. A certain amount of analysis is fine if it helps you find the right investment options for your
Post a Comment

How Much Money Should You Invest?

              


                Many first time investors think that they should invest all of their savings. This isn’t necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are.


                First, let’s take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?


                It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to lay your hands on in a hurry in the future.


                So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you’ve recently received, this will probably be all that you currently have to invest.


                Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time. Speak with a qualified financial planner to set up a budget and determine how much of your future income you will be able to invest.


               With the help of a financial planner, you can be sure that you are not investing more than you should – or less than you should in order to reach your investment goals.


                For many types of investments, a certain initial investment amount will be required. Hopefully, you’ve done your research, and you have found an investment that will prove to be sound. If this is the case, you probably already know what the required initial investment is.


               If the money that you have available for investments does not meet the required initial investment, you may have to look at other investments. Never borrow money to invest, and never use money that you have not set aside for investing!

Labels:

Comments

Post a Comment

Popular posts from this blog

10 Golden Rules for Stock Trading Success

Your stock trading rules are your money. When you follow your rules you make money. However if you break your own stock trading rules the most likely outcome is that you will lose money. Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these rules before your day starts and also read the rules when your day ends. Rule 1: I must follow my rules. Naturally if you develop a set of rules they are to be followed. It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules. Rule 2: I will never risk more than 3% of my total portfolio on any one stock trade. There are many old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over time. Rule 3: I will cut my losses at 5% to 15% whe
Post a Comment
Read more

Investment Strategy

                 Because investing is not a sure thing in most cases, it is much like a game – you don’t know the outcome until the game has been played and a winner has been declared. Anytime you play almost any type of game, you have a strategy. Investing isn’t any different – you need an investment strategy.                  An investment strategy is basically a plan for investing your money in various types of investments that will help you meet your financial goals in a specific amount of time. Each type of investment contains individual investments that you must choose from. A clothing store sells clothes – but those clothes consist of shirts, pants, dresses, skirts, undergarments, etc. The stock market is a type of investment, but it contains different types of stocks, which all contain different companies that you can invest in.                  If you haven’t done your research, it can quickly become very confusing – simply because there are so many different types
Post a Comment
Read more