Everybody talks about investing all through the day, but what exactly is meant by investment and why we should even invest in the first place. Lets get to it.
In simple terms, investing is just a process of deploying your existing resources in a way such that it increases in value or generates an income.
Is there a need to invest?, Yes absolutely, your money in hand has a tendency to lose its power intrinsically over a period. The one which erodes the value of your money is called inflation. To beat inflation and retain the power of your money investing is inevitable.
However, before you start investing you have to understand a few fundamental rules of investing.
Why is not just a question, it is a concept. why gives your action a purpose, a belief system and a reason to a pursuit. In any financial decision why is the most important element. When the why is clear, the how is easy.
Identifying your why happens with setting up a financial goal. working without a goal is like walking in a desert without a compass, you will never know in which direction you are going and where you are going and end up squandering all the time efforts and resources in vain.
Goals give you clarity and clarity is power that enables you to move in the right direction at a precise pace and reach your destination. It is crucial to plan the course of your financial journey. As it is often said, failing to plan is planning to fail, never let that happen.
Goal setting is the pathway for creation of wealth. To set your goals you must define your goals and write them down. Our tools below will help you not only define your goals but also measure and also track them. Isn't that amazing..!!
Investing is not a get-rich-quick scheme, it takes time, effort and dedication to come through. It is like sowing a seed. you need to water it regularly nurture it supplement it with manure, pluck weeds around it and then after relentless hard work you get to enjoy the fruits.Similarly, Investment is also a process. You need to be patient to enjoy the end fruits.
Your investments must be driven by inspiration and motivation and never by desperation and fear. Investment is less of a number game and more of a mind game. Look at money as a tool to unlock your financial freedom.
There is no good or bad asset class for investing, it is entirely based on your requirement and the why which you figured out is what determines the use of which asset class and up to what extent.
Undoubtedly investing in equities is the best option as it has out classed every asset class with the highest returns in the long run. Arguably even gold has not even come close to the returns that equities have given historically.
The stock market can work harder and longer than you ever could. It doesn’t take sick leaves, or goes out of business. Not investing in the stock market for the long term is betting against the Indian Economy – One of the strongest emerging economies in the world.
None of us, even I writing this piece, wasn’t born with a natural knowledge of Investments. The final industry hasn’t helped that; instead, they have successfully made the market look scary for regular people like you and me. The industry has also painted the idea that you can’t invest when in debt and that you need a huge amount of money to invest.