Investment Guide

Introduction to Investment

Manish Choudhary is 32, married and works for an MNC. Just like the rest of the game, he has his dreams. His dreams are no different than you and I who live, he also dreams is a plush home, heard of him. He dreams, build and decorate his house with his wife and children and family. He wants the animal possible education for his children. He wants to go on exotic holidays every year and wants to ensure that they have sufficient means to make lifesecure after retirement.

A careful look at his account balance and purchase activity, and we get the clear picture that is his dream to go to turning the dreams and the opportunities for them to remain at the reality forgotten. His savings pattern is simply not sufficient enough to pay his dreams. Everyone has the right to dream and have big dreams. But (our bad habits), keeping us from achieving these dreams. The only way to realize our dream is to create wealth. Wealth creation is only possible throughwise investment. Lets discuss and to understand that the thought processes of investment and the process is to provide wise ways to invest.

What is the objective of the investment?
Is an investment-shot process sure can make you rich, and allows you to achieve your financial goals in life. The first step before you start is your investment on the budget your costs. Ye shall know the pattern of your spending. The items that you most greedy and ComponentsWhere you are in control. How much does film cost to you each month? dent, thus creating your dining room on your pocket? irrelevant, as it was when you last month decided to buy this phone? By budgeting your expenses, you are actually an upper limit set for all of your expenses, so that at the end of the month, you can track your spending habits. The goal is to plan your budget and follow your plan. Budgeting to buy not only plan, but also your spending plan your savings. If you do notThey have no savings investments. Once your realistic budget, you start using the same. You will notice that you have made a huge value to your life. Save, and when you will grow your investment you're proud of your self. Do not think only to do, they will feel comfortable. Take it from me. The thought process of the journey of your investment is the creation of wealth for the happiness and welfare of the family.

What is the process of investment?
The investments are not a secretFormulas. The rule of the investments have the right to information, plan your savings and investments, and make investments in assets. The steps in the process of investment is involved, as listed below:
Budget Saving
To make saving and investing regularly
Investments are for long-term
Take control of your debt Why at all, what should we do about investments?
Ask your father, and he will tell you the smartest thing he did when he launched his career to a recurring bank account inthe bank at the beginning of his career. During this time, limited investment or the people were informed about investment opportunities and less on the need for investment. Now the day has changed, not just the people become more aware about investments, but also the demon of inflation makes us think about aggressively wise investment.

Inflation eats your savings
Maintain a good standard of living inflation eats your money, even if you sit and watch,Favorite movie. If your monthly expenses such as on today, Rs 15,000 and have annual inflation is 5%, 20 years later, the same goods will cost Rs 40,000 proud This means that the same set of items today, spending Rs 15,000 and must be after 20 years They spend Rs 40,000. Bank deposit gives you a slim margin of 6-7% per year. After examining the effects of inflation and taxes you with returns that are virtually negative is left. : Making investments in bank depositsThey lose money, instead of growing it. This is not a wise investment.

What is the key to sound investment?
Warren Buffet is an example of the most successful investment symbol of this world. He did not build wealth overnight. No one can build wealth overnight. To create wealth you must invest these steps on investment, save budget, to invest long term and remember you control your debts. But it is certain that all rich people very different from most non -of us. We will discuss some of those wise investment to-do's

Start the process of investing as early as possible.
For example, take two friends, Ritu and Manish. Ritu started saving and investment decisions of Rs 750 per year from the time she was just 15 years old. After 15 years (when she was 30) they held investments. She left her without investment inflows and outflows to grow.

On the other hand, Manish investment of Rs 5000 per year started, when he 30 years oldand continued his investment of RS 5000 to 60 years.

Assuming both earn a steady rate of return at 15%, Ritu portfolio has been a massive Rs 27.7 lakhs by the time she reached 60 years old. Manish accumulated wealth, when he at the age of 60 was Rs 25 lakhs. The key to smart investing is more time for your money to earn more money.

Get the benefits of compounding of the money

There once was a king and a peasant. Both were good friends since childhood. Somedayplayed chess playing, and the farmer a good game and defeated the king. King was impressed very satisfied with the farmer game, and he asked the farmer to choose his reward. The farmer was very clever. He asked the king to give him 1 rice grain for the fist square of the chessboard. 2 Rice Grains for the second, 4 grains of rice for the third, 8 grains of rice for the fourth and so on are complete up to 64 fields. The amount of grain that was required was to fill18,446,744,073,709,551615.

Suppose you have Rs 1 today. Each year, doubling your money, then at the end of 64 years, your investment of Rs 1 today Rs 18,446,744,073,709,551615.

This is the power of early investment return on the money. Let's take a practical example. Assume that your father gave you Rs 1000 for the 10th Birthday. As she was young to the money that he decided to handle a fixed deposit of Rs 1000 for the next 50 years. Fixed deposit was a steadyReturn on Investment @ 8% per year.
Your investment of only Rs 1000 Rs 47,000 today in 50 years
Your investment of only Rs 5000 Rs 2,35,000 today in 50 years
Your investment of only 20,000 Rs Rs 9,38,000 today in 50 years