Where To Invest

The economy is suffering from the credit crisis and rising energy and food prices. We thought everything would clear by the mid of 2008, but it looks like the downturn would stay with us for a little longer. Our money gets eroded by inflation daily. Zimbabwe is coming up with 100 billion dollar notes. In times like these, it is good if we have money invested, to beat inflation. When should we start investing?

The following paragraphs will focus on the optimal times to commence investing and how to carry it out smoothly.

There are two good times to start investing. One, either you start when you are still in higher education, or when you got your very first paycheque.

Only a few per cent of people do financial planning during school. Some spot the lack of financial knowledge as a reason. The others have insufficient funds to invest.

Investment or money management websites supported by the money or relevant authorities in most countries will help ratify the problem of insufficient knowledge. One can also expect good investing knowledge provided from websites of financial advisory firms. One thing is sure. Sufficient research is necessary before investing.

As for the lack of funds, some savings plans allow an investor to invest regularly about a minimal hundred dollars per month. Thus, there is no excuse not to invest, other than laziness to prepare for the future.

After graduating, if you have not started investing yet, the next best time to start will be when you have just started working. Contrary to popular belief, one does not need a whole lot of excessive cash in order to invest. Only a little will go a long way. Three to four months of cash for emergencies is sufficient. The rest can be used partially for investing.

Before one starts investing, he must know what his long term or short term aims are. For instance, for the long term, the investor might be looking at financial independence. An example of short term aim might be to accumulate enough money for some personal events. No matter what the aims are, always try to be more precise. Instead of wanting to have a lot of money, come up with a specific amount to have at the end. This will allow for more specific and thus, achievable goals. In addition, one has to weigh the risks of the investments and goals against the time horizon that she has.

On a final note, it does not matter how old you are. You can start anytime. You only have to set precise goals, start to save or invest with the right investing knowledge, maintain the discipline for a good number of years, usually more than three years, to reach your goals or to retire comfortably.

Author: Benji Foo
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