STEPS OF INVESTMENT
When we come to a point of investment, we are thinking the best way we can invest our money and effort in order to get much benefit. People sometime make mistake in prioritizing before they invest. Investment must be proceed step by step in order to get good return on time. Before investment three factor must be there, 1. Security of your money 2. Good return in specific time and 3. Liquidity, i.e any time you can withdraw when you need. But remember the bitter truth that no investment will give all the three benefit simultaneously. You have to loss at least 1 factor of it. If you want your money should be secure then you may get less return of it. If you are getting good security with good return then there will be no right of liquidity. Always remember big investment having big objection, take time before you invest. But try to avoid all kinds of loan, credit and other borrowing which will disturb your financial planning.
Good investment always like a tree near to stream whose leaf never shade and with no lack of water. Investment always keep you green and fruitful. Remember always that your loan and credit must not exceed more than 20% of your total assets you have, loan and credit is the great loss in order to pay back with heavy interest rate, hence always stay away from it.
When we come to a point of investment, we are thinking the best way we can invest our money and effort in order to get much benefit. People sometime make mistake in prioritizing before they invest. Investment must be proceed step by step in order to get good return on time. Before investment three factor must be there, 1. Security of your money 2. Good return in specific time and 3. Liquidity, i.e any time you can withdraw when you need. But remember the bitter truth that no investment will give all the three benefit simultaneously. You have to loss at least 1 factor of it. If you want your money should be secure then you may get less return of it. If you are getting good security with good return then there will be no right of liquidity. Always remember big investment having big objection, take time before you invest. But try to avoid all kinds of loan, credit and other borrowing which will disturb your financial planning.
PRIORITY OF INVESTMENT
1. LIFE INSURANCE: Every good citizen having good family, one is earning member then there children and retire parents are dependent on the earning member. Life itself is risky no one know what will happen tomorrow, Hence it is very essential that you must be secure your family’s future in the hand of good Life insurance company with good scheme and understand the policy term and condition and aware your nominee about the policy term. No such investment available like Life Insurance which will give financial back up in case of your permanent absent from this world. There are other minor expenses like medical claim policy, car insurance, business insurance which can prevail during the time of risk.
2. REAL ESTATE: If having good financial back up, it is always good to invest your money in legal real estate to have your own home, which the basic need of human kind. The investment should be on the basis of government development plan for the area where you are investing your money which will give you good valuation of your property. Avoid staying in rented house, you will end up paying the rent through out the year. Book a home, take home loan if you don’t have sufficient bank balance and pay back the monthly EMI instead of paying rent and security deposit.
3. BUSINESS: In order to jump in business, you must thoroughly feasibility study the locality demand and the benefit you can get it. “Before you start some business, always ask yourself three questions-why am I doing this business, what the results might be and will I be successful. Only when you think deeply and find satisfactory answers to the questions, go ahead.” There are various business like hotels, website, renting car, transport vehicle etc.
4. OTHER INVESTMENT: The other investment stand like investing in share market which is always uncertain, most people says it is certain that the share market always uncertain. Hence it recommended that you must enter in share market with only 10% of your total money you have with full knowledge of trading in share market. If you enter with full money then it is certain that great alas ahead.
Good investment always like a tree near to stream whose leaf never shade and with no lack of water. Investment always keep you green and fruitful. Remember always that your loan and credit must not exceed more than 20% of your total assets you have, loan and credit is the great loss in order to pay back with heavy interest rate, hence always stay away from it.
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