Many people shun the stock market and assume that investing is a preserve for the rich, famous, and those who don’t have anything to do with their plethora of wealth. That notion is wrong. Everyone can invest, not just those who are well off. Almost everyone can set aside some small cash to invest, close eyes on it, and end up with more money than the original investment. Simply put, frolicking the stock market is not out of reach for anyone, but for those who have weak financial faith that they can grow their money. Investing is relatively simple, and the outcomes are sweet and plentiful. By acquiring shares of listed companies, you will have saved money for essential things such as education, retirement, business – or you could transfer the benefits to your family members so that they become the most cherished investors. Investment basics will assist elevate your financial status, not just as a beginner in the stock market, but also as an ardent investor.
Good financial planning stands as a rule of the thumb for a successful investment. Investments are long-term, and you should pay yourself before plunging money into the stock market. Make sure that you do not accumulate debts because all the money is in the stocks or some securities. Even if you are into investing, do not deprive yourself of basics, but cut down on unnecessary things and luxuries. Do not buy or pay for anything that you don’t need to have. Some of the biggest and wealthiest investors did not live lavishly at first, but led a frugal life because of their seriousness in investing and accumulating wealth. If you receive direct deposits from your employer, consider channeling a certain amount of every pay directly to your investment account. This will reduce many temptations that may make you squander the money in unnecessary things or excessive expenditures.
Read widely on business issues on a regular basis before you invest. You have to understand the available investment options, and reading financial publications and other related documentation religiously will help a great deal. This will also help you know how to assess financial statements, scrutinize stocks (for valuations, quality, growth potential, financial strength, etc.), as well as how to evade pitfalls and scams related to investments. Some of the most reputable business publications include the East African Business Weekly, the Business Daily, and Investors Business Daily. There are several bloggers and websites out there who also provide credible information concerning the stock market such as Richmanagement.co.ke, Tsavo securities blog, etc. Also review international authoritative websites such as Yahoo! Finance and CNN Money. Warren Buffet is a classic example of success in the investment world – he had read more than one hundred books on investment before he was twenty.