 The best way to invest money:-

A step by step guide

Everyone has a unique financial situation. The best way to invest depends on our personal preference
along with your current and future financial circumstances.

It’s important to have detailed understanding of your income and expenses; assets and liabilities;
responsibilities and goal when building a sound investing plan.

I. Give your money a goal

Figuring out how to invest money starts with determining your investing goals, when you need or want
to achieve them and your comfort level with risk or each goal

 Long –term goals: -

The universal goal is often retirement, but you may have others as well: - Do you want a down payment
on a house or college tuition fees? To purchase your dream home!!

 Short-term goals:-
The daily home expanses, new year vacation plans, medical emergency plans.

A person should bifercate his ‘income’ and plans his budget as per it. He should differentiate expenses
and savings as two main things which will further help to smoothly function his income in future.

 Savings: -
The money saved from the expanse should be used for loans, to free up or prepay loans. If a person is
loan free he should plan for his future goals by investment. Investing this saving one should also think
for his retirement plans.

A long term investment can help you way better to smooth plan your retirement.

A good amount saved can be further used for emergency funding such as any medical emergency or to
cope up with frauds or when our body won’t help us to work physically and earn money.

 Expense: -
As said by ancient people ‘Simple living and high thinking’. It’s the only mantra to the successful life. Just
spending your income on your standard of living won’t function great in your future. A standard person
plans his or her expanses and savings not standard of living. Low medical expenses also comes anger
emergency funds.

 Share Market & IPO’s

A share market is unit of equality ownership in a company.

A person who holds the shares are called shareholders of the company. It is bought and sold on stock
exchanges.
IPO is when a company offers equity to the public for for first time in the market.

It is one of the best way to invest your money if done in a hurry all your savings can be gone in seconds
but if done wisely it can provide a strong cash flow in your retirement.