We are spending more than half an our lives working and saving, but we are hardly spend any time for planning on how to invest money on stock market that hard earned money to work more effectively. So, how do you financial planning your life?
Put your money (financial) house in order
Financial planning begins with a review of your entire financial profile, and not at investing. Previous to rushing to make an investment portfolio, you should to deal with the following issues:
Assure your health, assets and life
Begin by protecting your family’s existing lifestyle against expenses/ events beyond your control. Buy suitable insurance policies for your expenses of medical, car, life and other important assets.
Figure out (Calculate): How much insurance you should purchase
Defray high-cost loans
Paying bills of credit card on time can save you more money in costs of interest than most of your investments may possibly to earn you. Similarly for borrowings that cost you more than 15 per cent pay. So, put high cost loans at the back of you, and only then begin building your investment portfolio.
Put money separately for emergencies
Deploy a few money investments in short-term that can be encased on demand (requirement) to help you flood over unexpected requires and disasters.
Pull up a savings plan
Income – Expenditure = Savings
Don’t go away this equalization to chance – build a better savings plan. Put far as much as you can, as on a regular basis as you can, goal to save at least 15 per cent of your take home yearly income.
Decide how much to invest
Because equities are more risky, maximum return instruments, how much you must invest would totally depend upon you how much risk you can tolerate. Take this question to find out what your risk profile is.
Previously you have done that, use this allotment of asset test to analyze exactly how much amount of your savings you must invest in equities.
If you feel that direct equity investment is not for you. You can refer our guide to Stock Tips, Option Tips, Commodity Tips, and Nifty Tips etc. Here and how to invest in the stock market here for more information. However if you feel better more comfortable you can always get started in Share Market Investments by referring to our free guide.