There are many reasons a person should invest in a particular product i.e. financial or non-financial. During the period of 2007-2008 and 2011-12 there was a sudden hit and meltdown in the market, which forced many people out of their jobs. To face such situations one should plan some investment so that tough times can be faced with better financial planning to ensure both investment and liquidity.
IN CASE there are no savings, then it really becomes hard to cope with financially difficult times. Investments are those savings which help in securing the future in troubled times. There are a few techniques, which can be used as a guiding principle, by which the invested money could give huge return to the investor.
There is a small formula that can be help a person in deciding about the investment amount. The formula is, a person's age-30% of the age, gives the value one should invest in to various products. At a younger age one should start looking at investment options to get higher income later.
There are two basic ways to invest. One is financial products and the other is non-financial products. Equity bonds, mutual & growth funds, bank deposits, insurance are the financial ways of investment. While real estate and gold are the non-financial ways of investment. Non-financial investments are not failed investments. One should make sure that he or she invests smartly so that they do not face financial trouble at any point of time.
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