Well, I actually started in stock market 8 years back. And I have invested money in various other avenues. There are few things that other people advised me, and few things that I learned myself over the course. For beginners, here are 5 pieces on investment that they must know:
1. The stock market isn’t the only investment avenue- Many “experts” and bloggers would tell you that if you want to invest your money, you should go for the stockmarket. Yes, it’s a good advice—but not always! Aside from stocks. there are plenty of assets out there, just as lucrative, where you can put your money. Gold ETF, real estate, mutual funds (SIP), IPO, Binds, company fixed deposits, unit-linked insurance plans, and cryptocurrencies. Check out all these options.
2. You will lose money- There are so many tips and tricks out there that teaches you how to get the maximum returns on your investment. What they do is create a perception for the readers that unless they get back this optimum return, they have failed. In reality, in investment, you will lose money. And at times, small losses are good to unlock bigger rewards. So never be so afraid to lose your money.
3. You must keep emergency fund separately- This is very important, and I learned the hard way. There were times that I needed urgent money—but all my fund was stacked in different investment avenues. You shouldn’t make the same mistake. Keep aside an emergency fund locked in your bank account. You never know when you might need it!
4. It isn’t a one-day work- If you’re serious about your investment and the returns, this isn’t a one-day game. It’s a long-term play that would take years to build a solid portfolio. You need a systematic approach to invest your money in the diverse area. You cannot expect to invest all your money somewhere in one-go and hope it to make you rich. It takes time, hard work, consistency, patience and smart financial planning.
5. You shouldn’t take it very seriously- There was a time when I had my money invested in many avenues and everything was going so fast around that I didn’t have enough time to sleep or eat properly. My health was severely affected. I would be stressed all the time. And this continued for like 2-3 years. If you’re just starting to invest your money, don’t take this too seriously. Learn how to tackle stress. Know how to manage time. It’s okay if you’re losing money. Take proper care of your health. Eat healthy, exercise, get enough sleep, have a hobby. Don’t overthink about money every day.
These are 5 investment lessons I have heard and learned over the course of 8 years. Hopefully, for everyone who is just starting, this answer helps.