BASICS OF INVESTING

A lot of people nowadays are broke, especially Millennials who have just recently gotten out from University and went straight into the workforce. They don’t know where their money goes, and they can’t really understand how they’re barely living from paycheck to paycheck. Saving is the last thing on their mind, and if someone were to suggest that they “invest” their hard-earned money, it would sound like a foreign language. And they would be right about that.

Investing is not a very common term for Millennials. Sure, it made the Baby Boomers go from rags to riches, and the Gen X are neck-deep in the stock market, but it doesn’t make that much sense to those who are still in the process of getting the hang of the “real world”.

So what is “investing”? According to Merriam-Webster, “investing involves committing money in order to earn a financial return. This essentially means that you invest money to make money and achieve your financial goals.” Basically, investing is putting your money into a company, government funds, or the stock market in the hopes that you will end up with more money. Generally, people invest with a goal in mind, be it retirement, education, wedding – the list goes on.

There is a huge difference between saving and investing. If you put all your excess money into a piggy bank and smash it open after 10 years, all you’d get is the exact amount that you saved. However, if you put your money into an investment vehicle, you’d get as much as 10-12% more of your money per year. Although investing is riskier than plain saving, it does have higher returns.

Now of course, after having read this far into the article, you must be eager to jump into the basics of investing. But before that, let’s tackle what should be considered first. You can also play at online casinos which is not a great way of investing but could make you big buck in the long run. Be sure to have a look at คลิกตรงนี้เพื่อรับข่าวสารแบล็คแจ็คออนไลน์เพิ่มเติม for more information about online casinos in Thailand.

THINGS TO CONSIDER BEFORE INVESTING

Credit Card Debt
If you have a lot of credit card debt, then it’s not the right time to start investing. Hardly any investment vehicle will outperform the interest rates on your credit card, so before forking over some money into investing, it would be best to pay off your debt first.

Emergency Fund
If you have one, then you’re good to go. If not, then better start building one first. Because life happens, disaster strikes, and if you have no emergency fund, then you’re going to end up ruined and broke. So bookmark this article, prepare your emergency fund of at least 6 months of your salary, and when you’re done, you can finally start thinking about investing.