7 Things to Know Before Investing
Author : Mukul Kumar
Starting your Investment Journey? Wait! First, learn these 7 essential things before you invest your hard-earned money. Chalo, let's begin!
Know Your Goal (Lakshya). Are you saving for a new phone, a house, or retirement? Your goal decides where you should invest. Don't invest without a purpose!
Understand Your Risk Appetite. Are you a 'safe' player or a 'khiladi'? Investments like FDs are low-risk, while stocks are high-risk. Choose what suits you.
Power of Compounding ko samjho! It means earning interest on your interest. The sooner you start, the more your money grows. It's like a small snowball turning into a big one!
Diversify Your Investments. Ek hi jagah saara paisa mat lagao. Spread your money across different options like Mutual Funds, PPF, Gold, and maybe some stocks.
Beat Mehengai (Inflation)! Your investment should give returns higher than the inflation rate. If not, your money's value is actually decreasing over time.
Create an Emergency Fund. Before investing, save at least 6 months of your expenses in a separate bank account. This is your safety net for tough times.
Keep Calm and Be Patient! Investing is a marathon, not a 100m race. Don't panic during market ups and downs. Think long-term for the best results.