360 Degree Working (Monday-Friday)

Money Tips to Starting Your Finances Right

‘Make your money work for you'

If you’ve ever heard of that expression then you surely know by now what investing, trading and creating a nest egg for the future is all about. Everyone works some or the other way to earn money and the age old practice was to always save most of it for either a rainy day or as a future nest egg. However, recent times are calling attention to a new, better and much more improved way of managing ones finances right- Investing.

You already take heaps of efforts in earning the money in the first place right? Then why save it and settle for minimum bank interest rates or keep it aside in lockers and settle for none, when you can invest it and hope to earn way better. You’ve already done the hard work of earning your money, now let your hard earned money do some work and earn for you!

Here are a few tips that can help you start your finances right:

1.    Set goals- Most people forget this first step very often! Before you even think about investing, it is very important to know what you are aiming for, from your investments. For e.g. what your goal is, how much money could you need to achieve it, will it be investing ling term or short term and so on.

2.    Do your research – Before you start investing, you should always be thinking about due diligence for the various investment options there are. Then you can narrow down to the ones that are right for your goals.

3.    Pick a frequency- This one applies more to the people who have fixed monthly incomes or a set amount of money coming in at irregular intervals as well. Salaried people can always settle for an SIP amount that can be monthly, at the date they desire, while non frequent earners can go for lump sum method of investment. Both SIP and lump sum are possible in MFs, Stocks and ETFs etc.

4.    Time your goal- Not many people remember to do this but it is very important to time your goal, especially if you have multiple goals going on. Investing in MF and waiting for a long term to be able to buy a car in short time wouldn’t pan out, would it?

5.    Check your risk appetite- Always know how much risk can you actually afford to take while investing. Based on your risk appetite, asset management companies or even the professional wealth advisors can help you start investing right.

6.    Diversify your portfolio- Once you do start investing, the next step would be to ensure that all your eggs are never in one basket! Spread out your investments to mitigate your risk levels and ensure that your portfolio can earn you good returns.

7.    Portfolio check- When you have all your investments kick-started, it’s very essential to keep an eye on them from time to time. This is like a health check for your portfolio, to know how it’s fairing and if there is anything you should change or do differently.

8.    Monitor trades- Trading is no simple game, but if you study your course right and know what you wish to achieve from your investment then trading opportunities open up accordingly. You can choose from A rated scripts for long term to short term trades and from high frequency trading to intraday trades.

9.    Always stay up to date- When your portfolio is all set up and you have started bifurcating your money with the right financial products, staying up-to-date with the market and keeping an eye on the current affairs and news will always help you a long way with your investing and trading.

10.    Consult wealth advisors- Everything said and done, it is always better to ask for an expert's opinion or even ensure that your investment is in trusted hands. Portfolio managers can help you in every step of the way and offer you am end to end investment solution while the wealth advisors would have sound piece of advice for every situation and opportunity you are presented with.

At the end of the day, be it investing or trading, knowing what you expect out of the money you are investing, is very crucial. Earning higher returns is often the goal most people set for their investments and with the right kind of financial plan and portfolio in place, you will realise that it really is not tough to achieve!

You too can Make More Money by starting out with your finances right in the first place, and being smart about money. Saving, Investing and Trading, they all go hand in hand and at the end of the day, every individual needs to have the right balance of this according to their own goals and desires.

So like the investment motto goes, “The best day to start investing was yesterday, and the second best is now”, you should get geared up and start your finances on the right foot as well.