There is has a lot of information about investing online. But what investing advice will best benefit you?
Whether you are part of a large corporation, own a small business, receive a salary or are an hourly employee, how to invest your spare dollars for the best effect, many of the answers are the same.
Here are a few tips for making your New Year’s financial resolutions for 2020 turn into a reality:
1. Invest in Yourself
You are your biggest financial asset. If you are unable to engage in whatever it is that you do to earn money, then your financial situation is in trouble.
Self-investment can include very simple things like having money to do laundry at the local laundromat, nutritious food to eat, or transportation to and from work or school. It might mean purchasing some books about finances and educating yourself on how to handle your money.
It could even mean planning a few more hours of sleep into your day. You are important. If you aren’t functioning well, then your financial picture could easily tumble.
2. Essentials Before Savings
While there is frequently a debate about whether you should save money when you are in debt, planning where your money is to go before you spend it is always a good idea. No matter who you are, or even if you are a business entity, certain things apply.
That’s where investing advices come in handy. You need a secure, weather-tight place to do whatever it is that you do. You need heat/cooling, water, sanitary facilities, and a good workspace. If you are a commuter or if you make deliveries, you need good transportation.
Work online? You need a decent computer and a good Internet connection. Take care of those things first because they can make you money.
3. When and What to Save
Savings come in two sorts: a slush fund for that inevitable rainy day, and investments from which you expect a profitable return. Everyone needs a slush fund.
It is nice if it can earn a little interest, but this needs to be money that you can lay hands on right away if you need it. This is for the doctor, the dentist, the home repairman or the auto mechanic, as needed. Investment money should be money that you can set aside without feeling its lack.
Never invest your rent or lunch money. But do try to top up your slush fund so that you can siphon off some of it to invest.
4. What Will 2020 Bring
Oh, if only we could develop 20/20 vision for the future! This year is already shaping up to be interesting. Word is that the stock market might be a little slow.
Certain political events could make it a little jumpy. It is a good year to look for secure investments, rather than investments with a high return. But even with that said, having some funds that are likely to earn a little is always a good idea.
Keeping an eye on the financial news will also help you to develop green glasses to bring your financial vision up to speed so you can see 20/20 into the business world.