Before read this blog, you all read this money management blog, after that you can read this blog for your better understanding.
Investment is the last, final and important step, by following this step we can solve our finance problem and get financial freedom.
List of contents
1. Why we invest the money
2. Types of investment
3. My opinion on this
1. Why we invest our money?
We all clear our first step i.e., set finance goal and 2nd step i.e., money management. After this we reach in our last, final and important step which is Investment.
After money management, those money we invest for growing up. If we don’t invest our money then the value of money decreases day by day.
Let’s explain these things,
In the year 1950, the age of our grandmother and grandfather, that time if they had 1 rupee, in that 1 rupee they buy many things means, rice, dal, oil, sugar, salt, shirts.
In the year 1980, the age of our mother and father, that time if they had 1rupees, in that 1 rupee they buy many things also. But not that much things like year 1950.
Now a days, what we can buy in 1 rupee, only one chocolate or nothing.
See here, how the value of 1 rupee decreases day by day & year by year.
But why this situation is happening?
Because of inflation, money decrease their value (now a days inflation rate is 6%).
If we invest that money, we can beat inflation and our money value not decrease, it can grow up and up.
2. Types of investment
There are many types of investment options, like fixed deposit (FD), Public provident fund (PPF), Mutual fund, National pension scheme (NPS), Share market.
So, when we start investing journey, we can invest our money smartly as per our goals and money management.
Start investing journey from yourself. First invest money yourself, then invest money others.
2.1. long term investment
Start investment, in your long-term vision. How much long term we all are invested, that much our money increase which we can’t imagine. This investment is for fulfilling your long-term goals.
For long term investment, you can prefer Public provident fund (PPF), National pension scheme (NPS), Mutual fund, Share market. Where we can invest our money up to 30 to 40 years for ourself only and 10-15 years for others.
2.2 short term investment
In this investment option, you can fulfil your short-term goals. For this investment options you can prefer, Fixed deposit (FD), Mutual funds.
2.3. ultra-short-term investment
This is also called Emergency fund. For this investment option, you can prefer only fixed deposit or only keep your money in bank account. If any time you want your money, it can get easily.
There are so many ultra-short term mutual fund options also but I personally don’t prefer this all investment option for ultra-short-term investment, because by invest your money in this, you can only lose your money because of taxation.
Always invest your money, no tax investment options.
This all-investment options, I can explain individually.
3. My opinion on this
When we start our earning journey, we can also start investing journey because early investment gives you so much wealth by the compounding effect.
“Compounding effect is the 8th wonders of this earth” as per finance expertise.
Share your investment journey on comment section and comment also your opinion on this topic.
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