Minggu, 31 Januari 2010

Investing for Beginners

Investing for Beginners

Are You a Beginner & have you never heard anything about the Investment? Than This Article is for you. After reading this article, you will understand that why and how you should Invest? I will explain you in very simple language in this article that why & how you should invest?

What is Investment & Why You should Invest Your Money?

Well, the first very basic question comes is Why anyone should invest his money? Well, first of all let us understand what is investment and how it works? Well, see. In very simple words,

Investment means making your money work for you rather than you work hard for money.

Yes, Investment is the science and art of making money out of money. Every morning, you wake up and run to your job place, do the job or provide some kind of professional service in the economy (Doctors, Lawyers, Actors, Artists, Freelance writers). This is because you have the potential to make money in the economy and that’s why you do this.

But do you know that your money has the same potential as you to make more money? When you will realize and understand this fact, you are on the path of Financial Freedom & Becoming rich. Believe me, Your money has the same potential as you to go in the economy, work harder than you and earn more money. But to make money from money, you will have to make it work harder for you. And this process of making money work harder for you to make more money is known as Investment.

Rich people know this fact since their very early life and that’s why they have started focusing on making their money work for them since their early twenties or even before that. Warren Buffet had started investing when he was just 13.

So Now, you understand that, why you should Invest? Well, because you want to become rich, financially free and enjoy your life. This is because you don’t want to work for the rest of your life living paychecks to paychecks and dying with a huge debt and unpaid bills leaving behind you.

How to Invest Money? – Where to Invest Money? -

Now, the second obvious question comes is, How to invest money? Where rich people invest their money to get more richer? Well, Rich people Invest their money in Assets. Now, let us understand what is Asset?

Well, Asset Is something which puts money into your pocket by providing Capital Gains or Cashflow

Anything in this world which can fulfill the above criterias is the Asset. This Blog is an Asset because every month it generates money for me and put that cashflow in my pocket. So this Blog is my Asset. Here are the Examples of Assets.

Stocks, Bonds, Gold, Silver, Precious Metals, Oil, Real Estate, Mutual Funds, Art, Vintage Cars, Web Properties, Websites, Blogs, Domain names, Intellectual Properties, Movies, Music, Collectible Items, Sports Teams, Vintage Guitars are the few examples of Asset. However, anything can be your Asset and you can invest in it.

So buying any one or more assets from the above list out of your money is known as the Investment. Warren Buffet is the Stock Investor, Jim Rogers is the Commodity Investor, George Bush is the Crude Oil Trader & the Investor…etc…

Investment is a game of Money & Time Both -

Most of the people in this world have a false belief that, Investment is a game of Money. Well, this is the partial truth. The full truth is that, Investment is the game of money & Time both. You can only invest your time and still make money.

Say for Example, Take the Example of this Blog. This Blog is my Investment of Time only. I have not invested a single penny behind this blog to start it. I have only invested 6-8 hours a day behind this blog and today This Blog is my most valuable Asset.

Bill Gates has invested over 10,000 hours of his time to develop the world best OS (Operating System) Windows and after that Investors & Venture Capitalists have invested their money in Microsoft Corporation and Bill Gates has become the richest man in the world.

Thus, you can invest both your money and time and make a fortune. So What are you waiting for? Start Investing Now. You are not the Beginner now. Now you know that, what is investment, why you should invest and where to invest your money?…

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