THE BEST WAY TO START YOUR INVESTMENT AS BEGINNER IN INDIA You may already know you need to start investing for your future, but you have no idea where to start. There are so many options out there like the sharemarket, Real estate, chitfunds, FD, Mutual fund, etc. however, you have no idea which one is best for you. The objective of each individual will differ from one other, and it is always better to start at some point rather than sit back and do nothing.
Here, are few suggestions on what you need to do before you start your investment and how to plan your investment. Before you jump into the world of investing, you need to have a solid financial foundation.
Here is what you should do.
- Pay off your debt like credit card balances, personal loans, etc.. It doesn’t make sense to chase for 10-12% return on investment while paying 19-22% interest on your credit card debt.
- Cover your risks: Term insurance is must. Period. Additionally, you should also take health insurance.
- Set up an emergency fund for 3-6 months of living expenses. This fund will help you to deal with any unexpected situations, so you’re not forced to cash out your investment, especially during a market downturn.
- Live on less than you make: Naturally, no one can become successful with their money without first learning how to live on less than they make. Where will you get the money to invest if you live paycheck to paycheck?
START SMALL AND START EARLY Do not go all gun blazing by putting your life savings into risky assets like equity. You should start with a minimum amount. Just put under Rs. 10,000 into an investment and get it started. Today! The small amount of cash should not affect your financial situation (if that is a problem, you should make sure you have a solid financial foundation). You should be able to move it quickly to start a small investment. You may not even care if you lost it, so you don’t need a plan for that small initial investment. You can put it in almost any fund as the start of your investment. The most important thing is to get you started on something. Once you dip your toe in the water, you’ll have a personal stake in the investment. Looking at the value go up or down will motivate you to know more about investment. It will help you put together a plan for your investment.
