What are the Guidelines for Investing
Most people will be lulled by stories of people in the stock exchange, or in securities (corporate finance) or mutual funds on a fantastic saving of extra high-interest, 100% safe and quickly doubled in a short time. Do you have savings like this? And he said, There is … where? In Heaven. In addition to our eternal investment, if we still want to invest or save some of our earnings for the day ahead of us in this world, so think of this principle:
“In general, the rate of return interest rate risk and inversely proportional to the time”. It means if a high interest rate so high risk and if we want to briefly certainly interest a bit. Whereas if we dare put our money in the long run it can interestnya returm or better. In choosing the type of savings and investment instruments there are a few guidelines that we have to look at include:
Determine your storage goalsA person who is saving money for retirement will certainly have a different behavior with people who want to save money for educational purposes for example. Storage purposes the money is usually very closely related to storage period and the level of risk we can endure.Determine the period of our storage.There are people who want to save for a short time.
While others have a much longer time in making wealth accumulation. A 28-year-old young managers may have 20-30 years to plan for retirement compared to a 58-year-old director yag. In general, the storage period will determine the type of savings and investment is best for us. Determine the level of risk that you dare to bearHigh risk high return, low risk low return.
Some of us have a mental half-gamblers. While others have a mental safe player. Who had the courage to bear the high risk level generally have the characteristics of young, single, want to get rich quick and do not have dependents. While the safe player is usually the person who is more mature, already nearing retirement but still have the financial burden that must be resolved.
- Besides age, it is possible personalities we each will determine the level of risk we can endure. A person who is ambitious course will dare put their money into more risky instruments to get a better return and so on.
- Calculate your savings target.Saving without a clear target is a vanity. (Essay author). If we save money of course we have to calculate exactly how much money would we collect, how long and for what. Thus we can determine more precisely the type of savings that we can choose.
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