How to Invest Your Money

How to invest Money
Here is a question on how to invest money if you are young and perhaps it is your first job.

First, it is good that you start to look for the ways to invest your money at the start of your very first job.

Your bright future (in term of financial stability should start from very young age. At the age like you, you should start with how to optimize your SAVING (save out of every penny you earned) then to understand how to INVEST your money.

Make out your monthly budget by categorized your expenses into fix expenses (car/house loans, insurance etc), Variable expenses (electrical/gas/water bill etc.) and Leisure expenses (entertainment, food, travelling, etc.).

How much you can save per month from your variable and leisure expenses?

Make a record and monitor it regularly.

Open a bank saving account and start money saving journey by putting all your saved money into the bank monthly.

Once you have enough money then transfer your money to fix deposit which you can have a higher interest gain (normally 2.5-3.5 %) compared to saving account (0.5-1%).

Fix deposit, the interest return can only make sure that your money would not be devalued by Inflation rate of 2-3% in Malaysia, in other word, maintain your money present value in the future purchasing power.

Only now back to your question on how to INVEST your money.

If your country inflation rate is, say 2.5-3% then your have to find a financial instrument that have a return (at very least) more then inflation rate.

Investment can come with many form ranging from fix deposit, Insurance, bond fund, government bond, mutual fund to equity share and property (land, house and lot).

Start with the safer and lower risk investment which is insurance and bonds which normally have interest yield of 4 - 7 %.

When you have more or extra money then you can go for reputed mutual fund and equity which composed of higher risk.

 Most importantly don't become a credit card debtor (using future money) where most of the youngsters being strapped now a day.

Do you know that Credit card companies charges 11-19% of the money your over-drafted annually.

Another advise is get yourselves a house (property investment)once you have the money work up.

House is not only our basic necessity but also an appreciated asset and will force you to work hard and dump your money to it instead of spending the money else where....

 The best way is to follow the basic of investing. It might take you long to grow it but it is safer than other fly by night investment.


Hi hello I am happy to share my ideas about gadgets and other topic that interest me.

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