How to invest money to plan for a safe and secured future?

Investments are done to meet the aims of your life. You want to conquer various dreams and the best way to achieve them are through different type of investments.

We all earn and want to invest to save for our future. In the world of savings, there are no rules for everybody because different people have different needs, wants and aims in life. We all come from different financial backgrounds and have varied risk bearing capabilities.

You can open saving accounts, invest in homes, and invest in gold and stock markets. However it is a myth that stock markets are for the rich and middle class people can’t invest in the markets. When you invest, you become monetarily independent and this is the best way to generate wealth and income. When you start investing in smaller amounts you gain big. This is known as the snow ball effect. Smaller quantities gain big in sizes and momentum makes it greater.

In order to reach your wish list of savings you need to device a good strategy and implement it in a better way that suits you best. You need to follow the Maslow’s Hierarchy of needs to device the plan:

• • To be secure
  • To be comfortable
  • To be rich

Here are a few basic questions you need to ask yourself when you do your money investment:

• • How much are you planning to invest in your investment plan?
  • Are you willing to buy a property in the recent time?
  • How long do you want to hold your savings?
  • Does the saving settings meet you aims and financial plans

Let’s take it step by step to understand where and how to invest money:

Insurance: No sooner than you start earning, enrol for an insurance cover with a good term. This is the best and inexpensive insurance. When you invest money in insurance at an early age, you pay the same amount of money through-out your life cover because insurance premiums go up with age.

Money Investment in home/land: Self owned houses are the best kind of investments today. You can take home loans or invest in equity funds that can work as your loan repayment options. Home is your asset for the rest of your life.

Plan for retirement cover: Many years down the line, you won’t get monthly income that you get now. To sustain your living then, you need to know how to invest money in your retirement plan.

Plan for Short term and Long term investments: For this you can open a mutual funds account and purchase stock units from markets of companies that you believe in and not companies whose stocks are going up. Stock market units and mutual funds will take care of major expenses in life like marriages, car and education.

Health Insurance: In recent times it has become essential to cover your health. Select a proper scheme that fits you well.