Show me the money!!!

Many rich people have this saying in their biographies – ‘Make your money work for you.’ So I’ve got myself to learn and understand finance a bit more than a dimwit.

Being financially illiterate is not something one should be proud of announcing, but that is what I am right now. We all know to work hard and earn a living, but very few of us actually work smart and earn more than just a living. It would be much easier for us to earn more by just learning a few nitty-gritties about savings and investments. With practice we can all be masters at making money and avoid being broke!

For beginners, like me, the primary step towards investing your money is ‘saving.’ Once you have a little spare cash in your pockets, it would be a smart thing to stash it away in a bank rather than spend it on something unnecessary. For a starter like me, the finance jargon is as good as knowing a foreign language. The words just enter one ear and go out from the other leaving a void in my head. The only forms of investment I am aware of are the age-old bank deposits, gold and real estate. However, as part of my goal mission, I have forced myself to read-up and research on a couple of more instruments that could help me double my money sooner than later.

Well, as every other layman, I approached my most intelligent friend for an answer – Google! I asked for a simple explanation of markets and this is what it had to tell me – Financial markets may be categorized as: (1) debt securities markets (2) equity securities markets (3) derivative securities markets and (4) foreign exchange markets. Since I am still an amateur at investments I thought of looking up something much simpler. (however, this has been noted down for future research and understanding). So now when I looked for simple instruments to utilize as investments I got the following options –

Public Provident Fund
Mutual Fund (SIP)
Equity Shares
Real Estate Investment
Gold ETF
Post office monthly income account schemes
Company Fixed Deposits
Initial Public Offerings
Unit Linked Insurance Plans
Bonds

This also didn’t seem to process so easily in my head, however I did research a bit more on each topic and it didn’t seem like rocket-science any longer. I’m sure with a little more of hard-work and guidance from the internet (and maybe some reliable investors) I will cope up and learn the basics, if not master it soon. Dummies like me can gain some very important insights from Investopedia and a couple of financial newspapers and magazines.

So I’ve counted my notes and have kept it ready to invest in something worthwhile which will help it grow like a money-plant rather than prove to be a waste of money. It’s time for me to be wise and get rich!! Wish me luck!!! Woohooo…

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