Skip to main content

Smart Investment Tips To Grow Your Finances

Image Credit

After the economic downturn of 2020 due to the emergence of Covid-19, more people are focussing on making smarter financial decisions. One of those decisions involves making wise investments to grow your personal finances and cash reserves. With some normality slowly returning, there are several good investment options that you can engage in. Here are some smart investment tips you can apply to grow your finances.

Reduce your debt

The first thing you should consider doing before thinking of investing is reducing your debt. That’s because when in debt, there wouldn’t be much of your income left for investments. Also, considering how the past year unfolded with mass lay-offs, reducing your debt is a good investment. Credit cards are easy to carry around and use, but they are among the top reasons for revolving debt. As much as possible, pay off your credit cards as soon as you can.

Make sound investment choices

The problem most people face when it comes to investment surrounds making the right investment choices. Having money on hand is not the only prerequisite to investing. You must take a critical look at all the options available to you and understand how they work. Consider the risks involved, the potential returns, fees, and everything associated with them. Armed with this knowledge, read up on the various strategies that work for different investment options. The typical investment options include stocks, forex trading, mutual funds, and bonds. Here is a quick breakdown of what they are so popular.

Stocks

This type of investment option provides the highest potential returns if you know how to go about it. They provide exponentially increased value in the long-term. They are also the most volatile as their prices can drop steeply in a short while.

Forex trading

The primary reason why forex trading is so popular is that it is very accessible. It operates all day on working days, and it is only closed on a few specific holidays. You can also start trading with as low as $100 thanks to forex brokers who often operate without charging fees. IT also happens to be the largest and most liquid market in the world.

Mutual funds

Investing in mutual funds is quite popular because fund managers do all the heavy lifting. They create an optimal portfolio diversified enough to cater to all your investing needs. This diversification also makes it much safer than investing in individual stocks.

Bonds

Bonds are popular because they offer a specific stream of income. Usually, bonds pay interest two times a year. Holding bonds to maturity also means that as a bondholder, you get your entire capital back. This makes bonds an avenue to keep your money while investing.

Invest in a side business

In the current economic climate, you may think investing in a side business is a bad idea. But it isn't. Several businesses started during the lockdown and have grown as they continue to capitalize on the supply and demand gap. There are success stories of laid-off people who have turned their finances around by starting businesses that satisfy people's needs. So if you can, consider investing in a side business by monetizing a hobby or talent.


Comments

Popular posts from this blog

Mini Birthday Celebration At August Healing, Ipoh

GETTING HEALED AGAIN... this time four of us went to August Healing for other sweet and savoury delights.  This time when we went up to the little cafe, the tables were all occupied except for one.  Next time we must not go during lunch time.  Mistake....  Anyway, we managed to get a table near the window while waiting for another two of my friends to arrive.  First time visit for them and I hope they like the food there as much as I like them.  We ordered three different varieties to share as we had a heavy breakfast in the morning....  Which shall I choose? Berries bread pudding today....  Forgot what this is called....  Garlic honey scones...  Coffee for my friends.... As for me, I had Chamomile tea....  We ordered one croissant to share.... Smoked duck and omelette fillings... Full to the brim... RM15....  Quiche again.... different fillings this time... RM15 And a Happy Birthday piece of cheese cake... RM14.. Though just a few varieties, we were very full.... For dinner, I just ha

Freshly Baked With Love From Breadlady

BUNS AND PIES... freshly baked with Love.... printed on a brown paper bag, delivered by her handsome son right to my doorstep!  LOL.... Saw it on Facebook, one of my friends put up the fresh curry buns she ordered.  Yours truly saw and salivated and the next thing, I have the details I needed.  During the weekdays, the Breadlady has different kinds of buns and on Saturdays, she makes shepherd pies.  Since I got the details on Friday, I quickly messaged her and ordered 5 packets!  No, I did not eat them all, I ordered for my friends too, they have the same common interest as I do.  LOL...  ' Each set of shepherd pie comes with 2 fresh buns costing RM15.   I like her packing.... Brown paper bag with this slogan... Freshly baked with love...  The pies were still warm when they were delivered to right to  my doorstep with no extra charge... So nice! This was my lunch on Saturday.... I like the buns too...fresh and soft... One is filled with cranberries and apple.. And the other one is

Dim Sum For Six In First Garden, Ipoh

BREAKFAST PLANS.... and we had Dim Sum this morning in First Garden.  We made the plans the night before to meet at the shop at 9am...  (A relief for me cos I had been waking up very early these days!)   Managed to get a big table for six pax, thanks to two of my friends who were there earlier than 9.  Except for the SOP procedures, it looks like business were back to normal in some areas.  We spent around an hour enjoying the below Dim Sum and we would be meeting again for lunch later!  Opppsss... it is all about eating again during this time of RMCO... (Recovery Movement Control Order) First to be served... the Dim Sum-s... And the total cost for our orders came to RM60.... Definitely a good deal... I am definitely full.... for now! LOL...