3 Golden Rules to Start your Investment Journey
When it comes to investing, cash is the safest option than shares but then it is unlikely to grow in the long run. If you start investing you outperform inflation and are backed up for the worst scenarios. If you haven’t started investing yet, it is time you hop on the trend and make the most of your money. Why let your hard earned money sit when you can make it work for you?
Spare8 doesn’t make the process of investment tough for you. It helps you invest your spare change into a fund of your choice. The best part about Spare8 is that it doesn't take your precious time into KYC processes. Also, there is no defined cost and you can start investing in digital gold with just one rupee.
Investment strategy for beginners should begin by setting long-term objectives, Controlling over Emotions, Studying the Stock Market, Diversification of Investments, Avoiding the Leverage, Start investing at the earliest and more. Let us take you through some investment advice and the 3 golden rules to help you start your investment journey.
Rule 1- Think Like an Owner
When you invest, remember you are investing in business and not just stocks. While you may treat your investment/stocks like gambling. Always think like an owner because it's your hard-earned money that’s playing the game out there. When you invest, analyse the fundamentals and get an opinion as to how your purchase/investment will perform in the future. Always start off investing in businesses you are familiar with. Doing so will definitely aid you in making sound investment decisions.
Rule 2- Overcome your Fear
It is a common trend among investors that they sell or simply quit the investment journey when the market is down. Most of them often tend to forget that’s when bargains can be done without the fear of losing out on the profit. Warren Buffet famously said, “Be fearful when others are greedy, and greedy when others are fearful.” Do not rush to buy stocks or invest when others are rushing towards it, and don’t delay when people are fearing it.
Know that the stock market is the only market where the goods go on sale and everyone else is too afraid to purchase it.
Rule 3- Don’t Let Emotions Dictate your Investment Decisions
Keep emotions out of the line while investing. Never ever get carried away while deciding on investment options. Go through the realistic and rational approach. Also, keep your financial goals away from unrealistic expectations. There is no doubt that most of the people are investing and buying stocks out of greed and fear. Anxiety and stress levels arise due to uncertainty, thus, a stressed out individual’s ability to make rational decisions is impaired.
The bottom line of doing investment well is doing it right without stepping into the wrong decisions. Be decisive and make your own decisions. Instincts do play a role when it comes to investing at the correct time and in the correct business. Keep yourself motivated and go for things even if they seem risky or unsafe.
Always stay prepared for contingencies and keep a few investments in the liquid state. It is a good step to not lock all your funds for a long time. Emergencies never knock doors and come, there might come a time when you would need financial assistance and there is no bigger financial aid than your own invested money.
FAQs on Process of Investment
Below are the frequently asked questions on rules to start your investment journey:
Q. How should a beginner start investing?
A. New-comers should first set their objectives before starting to invest. They should analyze the level of risk involved in a certain business and keep aside their emotions. Also, studying the stock market and avoiding the leverage will be a great help.
Q. What are the 3 rules for investing money?
A. Along with the above-mentioned three golden rules of investing, you can also check the other 3 rules that are as important-
Proper Asset Allocation
Investor Behavior
Proper Research
Q. How can I invest with no money?
A. On Spare8 you can start investing with as low as Re 1! We do not have any defined minimum or maximum limitations. We at Spare8 believe that it is completely okay to start small.
Q. Can investing make you rich?
A. Yes! Investing in the right kind of business, digital gold, stocks can help you elevate your earning and profit. There is no doubt that investing in the stock market is the most reliable way to increase your wealth.
Investing in digital gold on Spare8 has the possibility of growing your money 2X. Once you invest in digital gold through spare change, all you need to do is sit back and watch your money grow in no time. The best thing about Spare8 is that it creates an unintentional investing habit. You don’t have to manually keep adding funds instead we will automatically fill in the funds in your budget.
So, what are you waiting for? Start investing in the right kind of business and make extra money for yourself!