When you sought for additional income aside from what you are presently getting today, you are already thinking of investing. You may tire yourself up by getting lots of work or offering every service you know but still not enough to achieve your goal, you are thinking of investing.
In this article, you will definitely understand thoroughly what investing is, how it works, how you will earn and how it will help you achieve your financial goals. We will help you reach the best investment strategy that fits your lifestyle without compromising your needs.
And if you are done understanding ‘investing’, you may go straight and continue learning Financial Education with some of the tutorials specifically written for investments like ‘Stock Market’ and ‘Mutual Fund.’
Investing 101 – What is investing?
Investing is an act where one put money or capital on a certain project while expecting to obtain an additional income, profit or earnings.
One of the most known investor today, Warren Buffett says, investing is “… the process of laying out money now to receive more money in the future.” The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.
What investing really wants to achieve is not to make you work harder but smarter. Most of us is stressing too much of our muscle and brain on our physical jobs, we waste most of our precious time on long hour works which sacrifices our time with family and health. With investing, we use those hard earned money from our jobs to work for our future and retirement.
However, investing is also about priorities; spending and leisure over your future goals. It is something you will choose wisely. Yes, it is great spending time on vacations, eating in a fancy restaurant and/or buying things you don’t really need, but those are just temporary. What you need is a long-term goal when you have already reached financial freedom. Freedom to do everything you want and buy all the things you desire without thinking what will happen tomorrow.
Investing is a way to set aside money while you are busy with life, and have that money works for you, so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending.
There are various ways you can invest today. You can go on putting those hard earned money to work thru stock market, bonds, Mutual Funds, Exchange-Traded-Fund (ETF), real states (like lands, houses and condominiums), or do put up your own business.
Every investment vehicle has its pros and cons that we will be discussing in a later section of the article. Understanding, ‘how different types of investment vehicles work?’ is critical to your success. Example, how does a Mutual Fund work? Who is managing it? What about tax and fees? Are there any costs or penalties for accessing your money? These are just some of the questions that should be answered before making an investment. While it is true there are no guarantees that your money will grow easily, taking a risk and working with a team will make a guarantee possible with a little help of analytics, researching and data.
Now that you have a general idea of what investing is and why you should go for it, now’s the time to push through on how are we going to invest? Let us resume on learning the greatness of mathematics in investing, the ‘compound interest’ in another article. Stay tuned.
For now, browse and click more on Redwood Capital Management Limited to know more about what we can offer for your financial needs.