First of all I want to say that investing is very good and extremely essential for anyone. What are basic and essential ingredients for investing your money? I am going to discuss that in this article so do read carefully.
1. Pay off debts before investing – first pay off your debts which may be credit card debt or short term loan. The reason behind this is that it is very foolish to pay more interest than what you earn over your investments. 2. Count yourself – by saying counting yourself means check correctly how much you earn and how much are your expenses. Then only you will be able to calculate how much is exactly left out for investing. The remaining should be invested from time to time regularly.
3. Invest and don’t trade – remember one thing that investment is always long term. If you are saying that I invested in stock market and a few days later you sold that stock due to severe price fluctuations then my friend let me tell you that you aren't investing rather you are trading.
4 . Give time – investments are long term and you have to resist yourself and give some time to your investment to grow. Money doesn't grow over night; you need to hold yourself for at least some years to get the real fruits of what you sowed.
5 . Invest in what you know – always invest your money in a business or a fund or a scheme of which you are familiar with. I mean you should have the knowledge about the business being done in which your money is invested. For example, if you buy share of any company, you should know of what the company is doing and what are their mission and vision statements. This will enable you to have a good idea about where your money ultimately will be spent.
This were just a few basic tips to begin investing and there are lot more angles which you need to verify but I can’t highlight them all because every investment is unique.