Personal Finance and Investment Tips
There is no magical things that anyone can make lots of money over-night. Definitely, one can lose all of his money over-night, because climbing hill is only possible through step-by-step, but can be tumble down real quick. Making money in one stroke in stock market or by any other means is nothing else but imaginary stories like Spider-Man or Super-Man. One must be matured enough to understand the investments risk and return.
1. Keep your eyes on regular income
It is most important to have rising income from your work regular basis. If you own a business, you should pull-out some money constantly for your investments.
2. A luxury once sampled becomes a necessity
Beware with your rising expenses. Check-out difference with luxury you are enjoying that has been added in last number of years. The luxury comes with additional expenses.
3. Buy in bulk when things are on sale
You can easily stretch 2000 bucks to buy 3000 bucks of the very same items you’d have bought in the course of the year anyway. That’s a tax free, risk free return on your investment.
4. Buy things when nobody wants them and sell when everybody does
During the summer buy ‘sweater’, winter will surely come. This is concerned with your investment also, invest in stocks when nobody wants to buy it and exit when markets are bullish.
5. Beware spreads
Always check to see how much you would lose if the item you bought today you immediately sold tomorrow.
6. Buy low-expenses, no-load fund mutual funds
In the investment race, over the long run, the horse with the lightest jockey -the lowest expense ratio -usually wins.
7. If you buy individual stocks, use low-commission broker.
8. Don’t buy things that are fairly valued. Buy things that are UNDER valued.
9. Diversify -over asset classes, specific stocks and over time.
10. Beware the permanent trend. Nothing lasts forever.
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