Investing Guide for Young Investors: Investing or Not Investing That’s The Question

Profiting From Investment

Just because you have invested does not mean you start profiting, you actually need a strategy to profit. For instance, one of the best ways to profit from investment is through diversification which has been emphasized by someone like Warren Buffet. He has said, “Don’t put all eggs in one basket.” This is one of my favorite finance quotes. This quote implies that you should diversify your investment. For example, if you have invested in the share market, you also need to invest in real estate. If you have invested in share markets, you should invest in various companies

Can Working Class Invest and Profit From Investment?

In order to invest, you need money. If you are working-class, you do not have money to invest. Therefore, the investing guide is always targeted towards the rich people, or at least higher middle-class people. If you are poor and if you do not have money and you are struggling to feed yourself, how can you invest? Therefore, there is no point in giving tips on investment to the poop people or the people who do not have money to invest. You may not have to be very rich in order to invest, you can invest even if you are middle class.

Favorable Environment for Investment

Democracy is needed not only for the country to prosper but also for the general public to earn better and live a better life. When there is no democracy, not only the market is unfavorable, there are also few income opportunities. Democracy opens the door for trade and commerce, it will bring investment, and investment will create income opportunities.

Covid Pandemic also caused a business failure. Businesses like aviation, hotels, theatres, gyms, etc. were shut down during the Covid and these businesses incurred a huge loss. Pandemic is also not a favorable environment for a  business.

Investment is Not Gambling

Yes, there is a difference between gambling and investment. While you have high chances of losing money in both, if you plan well and work hard, you can make money from investment whereas making money from gambling is entirely dependent on your luck. Your skills and expertise do not work.

Growing Your Investment

Investment can bring money 24 x 7, however, investment does not guarantee 100 percent profit. Your investment might also become a total failure. Furthermore, you also need a lot of money for investment. A small investment will give you small profits, whereas a big investment will give you big profits. You also need to invest in multiple areas.

Investment Areas That Can be Profitable

Investing in Stock Market

Share market investment is a good passive income source. You can buy shares from a company that is profitable, and you can continue to earn dividends as long as you don't sell. If you sell, you can get more money from your shares than you have actually invested.

Mutual Funds

You can also try mutual funds. When you invest in Mutual funds, what you are doing is letting your money be managed by experts. There is a guaranteed return.

Real Estate investment

Real Estate investment is for those who have a lot of funds and who can hold their investment for a long time. Real Estate investment does not give you profit overnight, Real Estate investment also can not be done with $100-$200, you need a lot of money.

Investing in Businesses

You can try investing in your own business. For instance, you can start a hotel business, health care business, education business, etc. These are definitely high selling niches for online businesses, however, in order to benefit from these niches, you need products on these niches. You might sell someone's products but you need your own unique products to generate tons of sales. You need to spend money to develop and market your product.

First published on Trendri, in author's name