As said best time to plant a tree was 20 years ago second best time is now!! Same goes for investing.. So It’s best to start investing a portion of your earning as long term investment, as soon as you start earning
Investing allows your money to grow thanks to compounding.. This helps with financial freedom early on may be after couple of years of hard work.
So what is investing?
Investing is allocating money in expectation of some benefits in future(source:Wikipedia)
Most people work hard to make money,(many lack the discipline to save money and invest) rich people have understood this and they park or invest their money to make more money(making money work for you)
In Investing higher the risk more the money. (not necessarily)
In the book rich dad poor dad two of the best quadrant is setting up business system and investing both of which has the high income potential
Let’s looks at some of the investment options
4.Exchange trade funds
5 Certificate of deposit
And many more
Let’s looks at some of the Investing strategies..
So what are the investing strategies?
An investment strategy is what guides an investor’s decisions based on goals, risk tolerance, and future needs for capital(source:investopedia)
Types of investment strategies:
This method is used by Warren buffett..
Basically buying stocks which are under valued or less than the price they should be.. Once the market corrects these stocks raise high and thus bring lot of gains for investor
Focus on investing where steady stream of money is made or generated..
Ex:bonds (fixed income security), dividend paying stocks
This is a type of investment strategy where focus is capital appreciation of equities
Ex:blue chips stocks, companies with high growth potential
4.Small cap investing
More riskier investment strategy as it focuses on investing in small companies with smaller market capitalization
Investing is huge topic Want to learn more
Here are the top books to learn more about investing