Daily Archives: July 25, 2018

Factors Which Should Not Be Ignored While Investing

Factors Which Should Not Be Ignored While Investing


Right from childhood days man has the desire to save money.  But the desire comes into reality once he grows and begins to earn his income.  Many think that during the initial years of youth, there is absolutely no need for saving money.  One can purely enjoy life by literally spending all the amounts earned. Of course, only during youth life can be enjoyed without limit.  But the habit of savings must start early.  According to the full report of financial experts, savings should start from the first month of earning.  At least 10% of the income must be set aside and invested so that it can multiply and help during days of trouble.

A young person will have many forthcoming years of assured income and capacity to earn.  This implies that he can also have a high-risk appetite.  Any loss can be made up in the forthcoming years.  But young people always have the risk of dying too early or living with a disability.  As age advances the capacity to earn reduces.  At one stage when earnings stop, the individual has to manage his expenses only from his savings. The old person also has the risk of living too late where practically the medical expenses will be huge and income would become nil.   So right from youth one has to plan for assured income during old age.

Nowadays pensionable jobs have reduced.  So, it is the entire responsibility of the individual to make sure that he gets a steady flow of funds to meet the expenses throughout his lifetime.  He has to ensure that income flow is available even after the earning phase of life.

The investment pattern will be different based on the stage of life of an individual. Young and just married individuals can invest in high-risk investments.  Couple with young children has to invest in long-term plans so that financial availability is uninterrupted to support the education of the child.  Old people nearing retirement need to invest in pension plans.  They also should have sufficient health insurance back up.  This will be useful to meet the medical expenses which occur frequently due to advancing age.

Young people who are tech-savvy can do online trading as an additional source of income.  There are new investing modes like cryptocurrency trading.  One can use software like crypto VIP club and can easily become an expert online trader.