wise management of personal finance is the best way to avoid cash crunch and debt problems. The necessity of wise money management has been urgently felt in the face of a crumbling economy!Ã‚Â In fact, it is very important to cultivate this habit at a young age.
For those of you keen on perfecting this habit, start managing your money now!
To start with it, you may consider investment in stocks as a great option. But you must keep it in mind that smart stock investing for young people differs from that for the veterans. The main reason being that the youngsters in the age group of 20 to 30 years tend to go through spending sprees. Their monthly expenditures are often quite high and leave minimal scopes for savings.
Wondering what smart investment is? Smart stock investment is nothing but investment that maximizes gain and minimizes loss. It is
Some smart investment in stocks can actually secure your finances for future, without having your monthly luxuries curtailed.
Investment can be real time peppy idea and here are some hot tips on investing for all you youngsters:
- There is never really an ideal time for investment, especially when you are a newbie. But do keep a track of the stocks for at least three years at a stretch, before you embark on first your investment.
- Smart Stock Investing requires constant practice; while it takes a lot of work, the more you put in the better you get.
- Try to be extremely logical and analytical while you invest. Do not worry! You will get better at differentiating good investments from bad ones, as you gain experience.
- Google for a cheap online stock broker to help you buy the stocks.
- Develop the habit of putting aside some money for investment every month. It can be so that you have to go for a debt consolidating measure and would require making monthly payments. Whether youÃ¢â‚¬â„¢re in college or in the working world, you surely save up some extra money each month after paying off your bills. Keep about 10 to 15% of that money for investing in stocks. This percentage, on one hand, will not affect your entertainment/luxury expenses. On the other hand, it would ensure your monetary profits for you.
- Whenever you zero in on a company in whose stocks you would like to invest, do not forget to do an exhaustive research on that company. Go through its financial statement. And it would give you a fair idea whether the companyÃ¢â‚¬â„¢s stocks are worth investing in.
- Check the price of the stock before you make the transaction. For this, log on to your online brokerÃ¢â‚¬â„¢s website and type in the stockÃ¢â‚¬â„¢s ticker symbol on the Stock Trading page. You may also get the information on stock prices at Google Finance.
- The stock brokers usually charge a commission fee when you book stocks via brokers. The commission fee is usually around 10$ and it gets added to your total stock price.
- Once you have invested, keep a track of your stocks every day. This will keep you updated about the diurnal rise or fall in the price of your stocks.
- Developed the habit of reading financial news and statements. This will not only help you learn about the pros and cons of your investment but also sharpen your foresight for possibilities of future investments.
So, you can see investment is not an exclusive area of experienced, grey haired veterans dealing with stocks for years. Youngsters like you too may try your luck at it successfully. All you need is a bit of patience and a rational approach. And you are sure to secure your finances with some intelligent investment!
Guest post provided by: Dorothy Anderson