You don’t have to be expert to Invest

MyWay

We hear people saying that- “I’m not an expert, I can’t invest in the market”. People fear to invest. They fear because of not being educated enough about the stock market and losing money scares a lot of people. At times you feel you’re too poor or too young or too dumb to begin. No matter what your age, stage or circumstances are, you need to start investing in the right way. You need to decide what is important, where to invest and find out the right way to raise money.

Reasons why people resist investing:

  1. Not having enough money to invest
  2. Their desire to keep money in liquid form for future emergencies.
  3. Fear of making mistakes in investments and losing money.
  4. Lack of knowledge in share markets.

Think…..

You can’t say that

Many will not begin the process of investing because they say that they don’t have enough money to make investments. We don’t need a large lump of money to invest. Your small savings can be bought up to make a large lump sum. Suppose if you begin with just Rs 1000 a month, it’s Rs 12000 in a year. Most people will be able to save anywhere between Rs 5000 to Rs 10000 a month. Now you have an answer for “where is the money to invest?”.

What if…

Yes, creating an emergency fund and buying insurance is very important which enables you to protect yourself from unseen happenings and reduce your financial damages. But do remember creating them will also reduce the need of having cash in hand. And this cash in hand can be a reason that people don’t invest for the long term.

I fear to make mistakes…

A lot of people manage to make investments in fixed deposits, real estate, life insurance, and gold even though they feel that these are high-cost investments that yield fewer returns. Always remember it’s better to have something in investment even if it earns less rather than having the one that earns you nothing.

Make some time to understand “finance”

“I don’t know anything about investing” is the most repetitive dialogue we hear from people. Remember, understanding the word “investing” is like “one-off” in terms of your time. Once you get it, nobody can take it away from you and once you understand the logic behind making in different securities, you will never get cheated by anyone.

How much money do I need to invest?

The next most asked question is “how much do I need to invest?”. All you need to do is to be wise by planning your investments and get suitable returns. It will depend on various factors like:

  • Why do you want to invest?
  • For how long you want to invest?
  • How comfortable are you in taking the risk to have higher returns?
  • How secure is your job?
  • What other financial products do you have already in your portfolio?
  • Are you an entrepreneur or a salaried employee?

Hence, these are the factors that influence your decision on “how much”. Every time you make an investment keep in mind that “your financial product should solve the problem that you are facing”.

Moving on…

Now, you are ready to make an investment in different investment products and it’s your turn to find out the product that suits you. Let’s create 3 different cells for your investments i.e., Almost there, In some time and Far away.

Basis Almost there In some time Far away
Span Any planned expenses that happen in 2-3 years Any planned expenses that will incur pen between 3-7 years Any planned expenses that are likely to occur in the distinct future
Need Sending kids to school, buying a car, buying a house. Kid’s higher education, Kid’s marriage. Retirement

 

Now you need to know “What amount you need to invest today?”. All you can do is just figure out all the expenses that you may incur and assume a certain rate of inflation to raise the cost. So, you know approximately how much you will need in the future. There are some online calculators available that will help you out.

Thus, start doing rather than waiting for a movement. Do remember you’re not a trader, you’re an investor. It is the role of the trader to speculate the market and as an investor, you make an investment. Look for a financial product that matches your financial need. Every product will have a certain lock-in period and has a time period where it works at its best.

Looking for the investment options – you can invest in MyWay Wealth. All you need to do is download the app, register & KYC (know your customer) and start investing a small amount every month, which is SIP (Systematic Investment Plan), with just Rs.100/-.
Sign Up on MyWay Wealth: Invest now

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Don’t Delay! Start investing today with MyWay Wealth.

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