M15: Investing Fundamentals

• Saving generally involves putting money into a bank or keeping it aside to ensure that is relatively safe and pays a fixed, although typically low rate of interest.

  
  

  There are many different ways you can go about making an investment. This, includes putting money into stocks, bonds, mutual funds, real estate, gold, etc. The point is that no matter the method you choose to invest, the goal is always to put your money to money to work so it earns you an additional profit.
• In today's scenario, investing your money is very important as just earning will not suffice your needs
• Investing


  Putting in money to achieve profit
• Investing


  Putting in time or effort for some future benefit such as investing in oneself's skills or health
• means committing capital or funds to different types of assets with the expectation that you will generate a gain or profit in the future from these investments.

  Investing
• an act of allocating your money with the expectation to get profit.

  
  

  This can de bone by starting a business or purchasing a property to invest with the hope to resell it at a higher price to make a profit. The main objective of investment is to buy a good that is not consumed today; but it can be used in the coming years to generate money.

  
  

  Investment
• Types of Investment

  1. Stocks
  2. Mutual Funds
  3. Public Provident Fund (PPF)
  4. Health Insurance Policy
• These are considered as the long-term investment and are the most preferred financial assets in the country.

  
  

  When you buy stock from a company, it allows you to engage in the company’s growth. These are offered by the companies and can be bought and sold on the stock exchange.

  Stocks
• These are the financial vehicles that are made by money of investors to invest in various instruments such as stock, bonds, and other assets.

  Mutual Funds
• This is a long-term financial asset that has a lock-in period of 15 years. 


  Public Provident Fund (PPF)
• It also helps in tax saving that allows you to build a retirement apart from saving on the taxes. If you are looking for safer options and wants to earn returns that you must opt for a PPF account.

  Public Provident Fund (PPF)
• It helps you to accomplish your financial goals and save on income tax every year.

  Health Insurance Policy
• 10 Reasons Why You Should Invest in the Future

  1. Your golden years are secure
  2. You put your health into consideration
  3. You slash your taxes
  4. Your loved ones are taken care of
  5. You've got all the time you need
  6. You're protected
  7. You become richer with time
  8. You enjoy a life that's free of debt
  9. You're ready for all the stages in life
  10. You'll become financially free
• Being young, or strong enough to move around and rely on yourself, has its good and bad sides. One of the plus sides is that you’ve got your whole life ahead of you. The downside is, you’ll have to work hard to support yourself and pay bills. We’re not talking just a few years of doing this. Most jobs need you to spend a better part of your life doing them.

  Your Golden years are secure
• Life is unpredictable. Today you’re healthy, tomorrow, well, you probably might not be. Having health insurance is a smart option. No matter how young you might be, there are lifestyle factors that could make you sick. What better way to be at your best than by having health insurance. In case of any illness, you know that you’re covered. Health insurance allows you to receive quality treatment. You spend less time worrying since you have more time with your loved ones.

  You put your Health into Consideration
• Taxes are one of those burdens that anyone working wishes they’d get rid of. When you decide to save for retirement in a retirement account all the cash that you store in it is tax-free. The only catch is all your withdrawals have to be in line with the regulations of the account.

  You Slash your Taxes
• The best (and challenging) part of having a family is being able to take care of them. When you invest from a young age, you’re preparing a comfortable life for them when you won’t have the strength to.

  Once you’re old, you’ll get all the time, and finances, to do whatever it is you fancy. Even if you’re way past 18, it’s never too late to start saving.

  Your Loved Ones are Taken Care of
• Planning on retirement early gives you an advantage of seeing your money grow over the years. If you choose to invest in some projects along the way, it will obviously decrease. The good thing is that you can get it back, with interest.

  You’ve Got all the Time You Need
• No matter how much money you’re earning, there’s no telling what might happen in the future. You could lose your job . If you’re relying on your current source of income, it’ll be a blow alright, but if you’ve got savings, congratulations.

  You’re safe.

  You're protected
• When you decide to change your spending habits, you’re preparing a better future for yourself. Investing in a plan or putting your savings away is crucial.

  It helps you add more value to your current financial status. It doesn’t matter if what you’ve got to invest in your savings account is a dollar. As time progresses, you get to enjoy more returns.

  You Become Richer with Time
• Choosing to invest in your future helps you steer clear of any debt. You know where your money is going and work toward growing it. You may come across several debts in your journey. Paying them off as soon as you can is a sure way of simplifying your journey towards a secure future.

  You Enjoy a Life that’s Free of Debt
• The only way to be ready for any stage in life is to invest. It may not seem like such a big deal now. It may be satisfying for you to earn from your job and spend the cash. Every stage in life comes with priorities. And, each of these priorities needs finances.

  You’re Ready for all the Stages In Life
• The main reason for getting a job is to make some cash. If you take this cash and save it, with time, you’ll become financially independent.

  Don’t let your finances control you. Control them instead, for yours and your family’s welfare.

  You’ll Become Financially Free