The Chinese New Year has passed and somehow you got lucky at winning big in the casinos. Before whipping out your wallet and go big on spending, think of investing the money you won instead.
Investing is a means of putting your money into use for you to gain more money in the future. Investing money for others is hard since they have to spend their hard earned money, however, if you won it during the Chinese New Year, then you got it simpler. The only thing you need is getting the right info for stock advice, checking out investment property loans or other means of investing your money.
Here are the 7 way to invest wisely the money won during Chinese New Year:
- Spend less and save for the long term
When we have so much money, one bad trait is to go on a shopping spree immediately. This is a bad trait as sometimes we overspend and find ourselves out of cash for the basic needs. You need to spend less of the money you won and save it instead. When you have enough savings, then the next step would be investing it wisely.
We need to budget the money won and spend some of it on essentials, like food, water, electricity and mortgage. Spending less doesn’t mean we don’t want to have fun, but it means saving it up for the future to travel more and spend more. The more savings you have in the bank, the more you get to live comfortably in the future.
- Invest in assets
This is the most common investing method there is. Asset Investing is putting your money in bonds, stocks and shares in the stock marketing. You have to make sure you get to spread your investment across asset classes, this helps protect your money when things do badly.
Shares are a type of asset which, deliver the best returns over time but with greater risk of losing big. Bonds deliver lower and longer term returns however, it’s less volatile.
You have to invest in companies that are reliable and have a proven track record. Putting all your money in one company is a big risk. Decide on how to allocate your money and how much you can afford to lose and what period you have to invest over.
- Pay a profession to seek investment advice
It is always great to seek the help of a professional to show you the ropes on how to invest your money wisely. You have to seek the help of a financial adviser or planner, someone who charges a flat fee by the hour. There are financial planners that charges by the percentage you invest as compensation, don’t hire these type of advisers as it will put a huge dent in your investment returns.
A good financial planner will teach you all the things you need and let you understand everything about what you invest in.
- Keep tabs on the fees
Investment fees can put a dent in your wallet or worst make you bankrupt. There are several investment fees you need to consider:
Transaction fees – these are the fees that are charged every time you sell or buy an investment. These fees are pretty low however, accumulated over time could really mean a big thing.
Annual fees – is charged every year from your own shares of a mutual fund. This fee is quite high however, would only charge you one time per year.
Front end loads – these are fees as high as 5-6% of the total amount invested to purchase stocks.
You have to check these fees before purchasing a share or stocks as that’s the money that does not get invested.
- Investment needs time
Remember that investing needs time to get your money’s worth. You have to be very patient and learn the value of your investment to go down over time. As time stretches on, the value of your investment go up. If your investment is not performing very well, you should be patient as the market shifts and changes over time.
Take a long term view on how your investment would grow and keep things in perspective.
- Avoid quick rich schemes and create a budget
Investing wisely is boring, but you get to reap big money over time. Don’t hop into quick rich schemes that over promise. Usually these schemes are not legit and ask you to invest all of your money in one swoop.
Check your investment every week or month, this ensures that you can spot early warnings of issues.
- Get out of debt
Debts also accumulate interest, interest that should have been saved or invested. The more you have debts, the lesser opportunity your money will grow. If you want to get out of debts, you should learn to budget and prioritize.
Investing money in reliable and trustworthy companies, getting great stock advice and investment in property loans will pave you a greener pasture in the future for the money you invested wisely.