Three Important things to keep in mind while making the first Investment? (2024)

Are you ready for your first investment?

Follow these points and you don't need to worry about

Investing money has always been a big task for everyone. Everyone wants to make money, even me too. This is a very common thing for everyone. We always keep on looking for new ways for investment and how we are getting those, either from family or friends or colleagues but do you think it works for everyone?

No, it is not always the same for everyone. Investment is not only about putting money in someone’s pocket and he can give you whatever returns you want.

Let’s talk about then how we should do it? How to make your investment fruitful and how to make money?

There are a few important points we should keep in our mind while making any investment.

1. Your future goals

2. Amount of investment

3. Risk appetite

Let’s discuss each aspect of the above one by one,

1. Future goals: first very important thing about the investment is your goal or I must say you should be very clear about that what you want from your investment? What is your expectation from your investment? For what purpose you are putting your money into any investment vehicle?

There are so many reasons for investment and for each purpose you have to invest accordingly. If you are investing in children's higher education, you might require money after 10-15 years or if you are planning for your marriage then you might need it after 3-5 years. Also, you have to invest for your retirement also. Medical expenses also you have to manage in shorter terms.

You have to make a difference between your investment. So, identify your short-term and long-term goals and make investments accordingly. You can invest in many Stocks, Mutual funds, 401 plan

Making investments according to your goals makes you manage all your needs at their specific time and also makes you free from all your worries. Want to know more about future goals of investing. Read here

2. Amount of investment: what amount you want to invest 100$ or 1000$ or in millions or billions. There is no limit to any investment. This is the beautiful part of it. You have seen many people who started with a few bucks and now they are among the richest people. This is what you have to do. Just get ready for the investment and do it. Whatever amount you have you can invest accordingly. It gives you a start to manage your money and the courage to invest money. You can buy a stock with a minimum price of one stock from your broker. You can make investments in mutual funds with their minimum amount as well. Also, you can do some investment in real estate. All have their own limit, if you have a limited amount you can go for stocks, funds, deposits, etc. if you have million dollars you can invest in real estate, or outside of the country.

Do first think about the money you have for investment and make a plan accordingly. Also, you can have any personal financial adviser which will help you in managing your fund in multiple assets. Few dollars given to an advisor saves time and it makes you concentrate on other works which you are doing.

3. Risk Appetite: you have to understand, when you are investing money there is always a risk of having negative returns, you have seen during the Covid crises, so many US stocks got crashed and many people lost their money. You never know what is going to happen in the future. Don’t try to put all your money into one type of investment. Whenever people are making investments, they think that they will become profitable from the very first day and will be millionaires after a few years. The system never works like this. Do your investment from the money which you think you don’t need in near future. Emergencies are part of our life. Also, don’t try to put all your money in any locking period scheme where it becomes very hard for you to bring at the time of need.

Keep in mind that the money you are going to put in any investment vehicle that might lose. So, people before investing studying about that a lot. Getting more information and the history of the particular vehicle helps you in falling into big trouble. There are many assets are available in the market i.e. Cryptocurrencies, stocks, mutual funds, and other market-dependent assets. All have their own risk associates, keep in mind that and also calculate accordingly how much you are ready to have it. This will help you in managing your portfolio.

Wanted to know about, how to manage your personal investment portfolio, read here