Why is Investment necessary?
Investment is a way of paying yourself because normally when you earn you spend all your money on paying electricity bills, insurances, fast food and other motor vehicle expenses. At the end of the month when you are done with paying everyone you realise that you have hardly any money left for yourself. This is where investment comes in. Here are a few steps how you can start paying yourself.
How much should you invest?
Firstly decide the amount you want to invest. Try not to over-commit in investing as you might end up unable to pay your daily expenses.
Whom should you invest with?
Secondly find a brokerage with good cost and value services. Seek the one that suits you the most because different brokerage houses have different schemes.
Which account should you select?
Thirdly select an account that fits your bill because there are various types of accounts such as taxable brokerage accounts, individual retirement accounts (IRA), Roth IRA to name a few. Every account has its own perks so choose wisely.
Where should you invest?
The fourth step is investing wisely. In the beginning you should try to avoid dicey investments because you might end up losing your entire investment as you will have a small amount.
When should you cash in?
Finally, be patient and wait for the right time. Remember, the riper the fruit, the sweeter the juice.