Every individual who earns is an investor, as he is investing his money into some portfolio or the other. He is making plans small or big and thinking about saving money, concerned about his retirement and preparing plans to combat any exigencies coming his way.
When the planning doesn't work out, in all probability the blame comes to the index of Stock market, the plan one chooses and the global economic crisis or the policies formulated by Government.
The challenges are more if you belong to the "Middle Income group" of the society.
There are probably no definite guidelines for people to make their investments, though a glimpse is mentioned below.
Sensing the market
It is very important that you understand the trend of the market, analyse its on-going performance and sense the future moves, before you put your money into any investment option.
Gauge you debt level
When you plan to buy a home or any other possession which might drain out all your income, then never do it beyond your capacity to handle it. Find more information on merchant processing options for high risk industries .
Mostly it is seen that people buy a home and a mortgage which they are unable to pay back, hence the debt is likely to increase beyond their capacity to handle the same. So always calculate your income, the expenditures and the repayment instalment you have to make every month. After all it's a recurring expenditure and a not a day long story.
Do you have too many Credit cards?
More than a help too many credit cards are sometimes a firing cause to increase your debt level. Generally what people do is that they buy a new card to meet out the old debts, in turn they land up getting dipped into debt even more.
Are you covered well?
Always introspect, if you're covered well for any kind of exigencies and emergencies in life. You must hold adequate amount of health insurances, life insurances and even disability insurances too. This will be a great support in your rainy days.
Are you investing regularly?
Make it a point that you're a regular investor, even if it is a small amount. Never leave it for tomorrow because it never comes.
Investment and financial planning has no secret formula, it all depends upon your farsightedness and sincerity to gauge the future and make decisions accordingly.