5 basics of finance/investment everyone should know
By senthil Nathan on The Capital
Money has become an indispensable element of our life. Therefore, we exploit in a desirable manner for the same. After exploitation, we will hunt for channelizing our savings, in order to get a steady income in the near future. The above-mentioned point can be done in an efficient manner by gathering knowledge of finance.
Emergency Fund
You must secure yourself by savings 6 months of your estimated expenses. Everyone has their own commitments, according to that think and plan for the worst scenarios. In financial planning, you must always prefer to dominate savings for the worst scenarios, only then you can control and manage the money
Short term Investments
When it comes to short term investments, you need to concentrate on the company/ organization where you’re planning to invest, after analyzing the company’s performance and history you can choose it wisely. For a short term investment most probably gain will be lesser than the long term investment. Instead of lesser gain, we have to think differently
Money will not multiply by itself, unless you invest it
Long term investments
When you go for long term investments, plan ahead that you’re not taking back the investment in a shorter period. In no way you should stop the investment, if you did so those investments will not fetch you gain for your money. Mostly young people won't trap into a long term investment, because it is an age where you explore different things around the globe and moreover over it’s a dilemma stage. Once you’re strong in your mind you can start this type of investments
Reality and expectation
At this stage, for investment definitely, you will be searching for highly qualified people about investment. Don’t get trapped in such type of persons. If you do so it is called an expectation. Finally what you get is called reality. Instead, you can ask your friends who really know about you and also all your friends will be working in different sectors. While discussing these investments you will also get to know the different ideas from people who will develop your thoughts.
Understand the lifestyle
Don’t buy expensive things unless you’re able to buy again if you lose it suddenly. example: Gadgets. Instead of being expensive materialistic, you can satisfy the primary needs.
