Finance is an attractive field, which has been attracting a lot of people to learn and participate. But like any other field, before entering a fast-growing market, people need to prepare themselves with the necessary knowledge. So to prepare thoroughly for financial investment, what knowledge do you need to prepare? Let’s learn about them through this blog.
Where can you learn financial investment from?
Currently, there are many resources for you to learn both the basics and the depth of financial investment. But also because of that, beginners will find it quite confusing in selecting information.
The most traditional way is to read financial investment books. Choose well-known books from leading industry experts who have established their names over time. Besides, approaching and adding more knowledge every day by reading financial investment newspapers is also an effective method. You will be “acquainted” with the financial world and understand the financial situation in the country and the world. Thanks to this, you will also discover a lot of real-life financial investment situations.
In the age of technology and the internet, learning financial investment online is also a cost-effective learning channel. However, online learning has a major drawback. It provides a lot of information. To be an effective learner, you need to know how to select and filter knowledge from reliable sources because not all information online is reliable and accurate.
If you are still having trouble finding a reliable finance course, you can try our investment & finance courses.
Tips to support financial investment
Learn to save more
If you want to invest financially, the first thing you need to prepare is money. Learn from financial management tips and spend more efficiently. Ideally, you should start your investment by giving 10% of your monthly salary to your investment fund.
Never stop learning
You need to understand the simplest rules before making investment decisions. As mentioned above, read financial books from top experts and practice this habit every day. One rule you should remember, which applies not only to financial investing but to all sectors, is that you only invest in what you understand well.
Besides the advice and knowledge from books and financial investment courses, you are also your teacher. There is no success without the foundation of failure. It is important that you make prudent and correct decisions, and learn from the mistakes of the past to lay the foundation for future decisions.
Build your investment list systematically
Buying low and selling high is a simple strategy. Set aside at least 10% of your earnings to buy stocks every month. If you want to invest in stocks, you should remember that the stock market always bounces back, even in a crisis.
A few investment channels you should refer to to get started
When people did not use money, gold was the most popular measure of value. Gold hoarding is a long-term investment method and has proven to be quite effective. The reason is that gold investment is simple and does not require much capital, brings stable profit because the value of gold does not fluctuate much. However, this investment channel does not bring high profitability. Moreover, gold investment is increasingly dependent on monetary policy, so the risk ratio is higher than before.
Stocks & Bonds
The most common way to invest is to buy shares of companies listed on a stock exchange. Historical figures show that stocks yield 10% per year if dividends and earnings are continuously reinvested. However, stock prices are often volatile and short-term declines can cause investors to lose money.
Investing in bonds is also a way to earn profits. Government bonds are considered the safest investment method. But remember, the lower the risk, the smaller the return.