Investing Basics: What Are Your Investment Goals? Part 3
Where can you find money to invest? It will be what you manage to save left over once you have got out of debt and curbed any bad spending habits you might have identified in part 2 of this article. So what next?
YOUR BUDGET, AND BEYOND
If after you have worked out your budget and your strategy for getting out of debt, you feel you have money to not only save, but invest, then you can start learning more about the various options open to you.
If your investment goal is to get money quickly, you should focus your attention on high-yield, short term investing as you possibly can before you invest. Consider Treasury bills, for example, which guarantee a yield and can be taken out in a variety of sums, for relatively small increments.
Consider also any broker’s fees, transaction fees, and any penalties for early withdrawal, for example, from a CD.
With stocks and shares, you need to consider the volatility of the market, and again, all those hidden or not so hidden fees involved. Trading in FOREX, or foreign exchange, has become very popular recently because there are far fewer trading options between foreign currencies like the American dollar and the Euro, but you need to study what you are doing carefully before you invest.
You should strongly consider talking to a financial planner before making any investments. Your financial planner can help you determine what type of investing you must do to reach the financial goals that you have set.
He or she can give you realistic information as to what kind of returns you can expect from each option, and how long it will take to reach your specific goals.
Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds.
It takes a good amount of research and knowledge about the market if you hope to invest successfully, and on-going effort every day to make sure you are on target, and are winning the investment game, not losing your shirt.
Goal-setting before you invest can save a great deal of time and money in the long run. So get out your pen and paper, and start doing the math!
3 parts, 983 words
