INVESTMENTS AND YOU: Grow money

Ever heard people say that they do not have any form of investment and wonder what they are talking about? Then there are those who say they do not earn enough to have any form of investment; very unlikely. While not putting down anybody’s pay check, here is something you need to keep in mind.

It is good to work and live on your earnings but having extra income that will not put a strain

on you, your budget and your goals is an even better state of things. Getting extra income is investing in assets which work for you. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.

Anything you purchase now and will produce more money if sold in the future is an investment. There are only two legal ways to make money: working for it and investing what little you have to get more money. You cannot have money if you do not make money.

A lot of people think that your investment has to be something elaborate but it is not so, with as little money as you have you can start up something. Keeping money in your pocket instead of investing doesn't profit you. Leaving $100 in your house doesn't make it more than $100 and won’t be anything more than $100 for as long as it remains where it is.

You can decide to keep that same money in bank and watch it accrue interest over time, and someone else can decide to buy and sell stocks and get profits. With a little bit you can get more. Whether it is in savings, stocks, real estate, gold or precious metal, bonds, small business, the objective is to get involved in something that will generate more for you in future. If you want your money to grow a substantial amount, you should invest.

When you decide to invest, you are making a decision of sending your money to multiply itself by earning interest on what you are putting away and/or through buying and selling assets that will mature and increase in value. The earlier you decide the better for you and the easier it is for you to build up a safe guard for the future.

Don’t just jump at anything that catches you fancy. Be calculative; get information about what you want to do. It is very important for you to have your goals in mind when you deciding what to invest in. Your goals will determine if your investment is short, long or intermediate term. You can decide to engage in a couple of short term investments, take the money earned and reinvest in something long term. It’s all up to you and what you want and how much risk you are willing to take.

TOP TIP 1: Whatever you are using to start an investment should not put a strain on you, your budget, and on your goals. In investing, your money should be what you can do without for some time.

TOP TIP 2: Don’t invest and start hoping for the reward immediately. Have it in mind that investment is like planting, and waiting till time of harvest. No farmer plants and waits to get harvest immediately. There is that period where the seed has to grow to maturity before it can be harvested. Be ready to wait, be ready to do without the money you are investing for a period of up to 3 months depending on what you going into.

TOP TIP 3: Be sure to calculate the risk involve and be certain that you willing to take it.