In the hurly burly day to day existence one lives from one meal to the next, from one bus/ train journey to the next and has no time to look at the long term. Nature has given us an opportunity to be travel-less for some days. And there are so many prudent ways one can spend time.
Now that some time is there for everyone to stay at home here are some important finance goals to look at. Investing knowledge is even more essential if you are a beginner!
# Understand about Financial products | Investments | Finance
# Learn about Mutual Funds
# Know about SIPs
# Understand savings
Lockdown Goals
1. Save more – The next two years are going to be tough. Dont let the booming and dipping stock market deceive you. Tough times are ahead. Save money.
2. Invest in SIPs – These are versatile investments that take care of the dispersions in the market. If you have not invested when the markets dipped, you can start off your investment journey now and SIPs are a good way to go about it. Check out this guide on SIPs of Mutual Funds
3. Alternate source of Income – That is essential in today’s uncertain world. However the opportunities are plentiful these days. Teach something, grow mushrooms, give your home on rental, write a book, resell on amazon, etc. There seem to be so many alternate careers booming. You need to seriously think of taking advantage of one.
4. Analyze your portfolio – Now this is a hugely important step. Theres no time like a market dip or low sentiments to analyze your portfolio. This will enable you to realign your portfolio goals. Check out if your portfolio is sufficiently diversified. Does it cover the companies / investments that promise returns in the next decade. It should also not dissapoint you in the short term. Find out where you want to put your bets from your inherent knowledge of the industry. Is recycling the future or is it solar energy, do you bet on heavy metals, chemicals or on an online stalwart, do you bet green, gold or real estate. If you start looking at these questions, you will find the answers. A judicious mix of stocks and mutual funds together with gold and real estate may be your solution. But its time to know where you have put your money.
5. Make Goals – Put your money into various baskets covering your goals. Some goals maybe short term and some long term. And even if you feel you dont have enough now, you can still start. Whatever you do, keep your expectations judicious. Don’t expect the moon out of your investments. Expect returns that align with the historical returns of the fund. The reason for this warning is that many people in their hurry to achieve their goals get into schemes that promise much more than is possible. That is a sure recipe for disaster. Because as I keep saying, if something looks too good to be true, it probably is too good to be true!
Hope you all have a happy and fruitful investment journey!