Wise Investing Decisions Take Time & Knowledge

 

 

The basis of financial planning is to earn more than you spend. Trying to save 10% of your income might just be too hard when first into the work force. Don’t decide to save all or nothing, 3%, 5% or $25.00 per pay check is okay. The point is to start a reserve in a savings account, credit union or other place available to you.

 

While your money is growing, use the time to plan an investment. Search for options from your bank or work place. Some employer’s match your contribution; some financial institutes give better rates. Research ask other people, but always make your own decision.

 

Your plans and dreaming for your future are based in you learning to invest. One of the easiest investments is mutual funds. A risk taker and a more knowledgeable investor will pick individual stocks. Buying, holding and selling stocks will require you to research and monitor your holdings. You must keep up with the stock market and what is current in the world. You also must be able to make quick moves and be confident in your moves.  With mutual funds, you can relax, but you should be involved and watch what is being invested on your behave.

 

To begin: How much should you invest?  The answer has many variables, and most of them are personal to you. Will this be a short term or long term investment?  Short term invest are usually not stocks. Saving for college or retirement would be a good long term investment.

 

Financial planners will have worksheets to start planning your investment.  Making out one of these forms saves time in asking redundant questions.  Let’s start with a few basic figures. How much income do you need in retirement?  You will need 70% of your income now just to live as you are right now.  Using 100% figure will account for inflation and plan a more comfortable lifestyle.  This is just a basic. There is a factor figure used in budgeting your retirement.  It depends on your age, your income and your wants.  This has to be calculated individually.

 

The more knowledge you have, the better invested you will be.  These are not decisions that have to be made today.  Take your time and make wise choices.