by Lina Martinez
Money lying idle in your bank account actually does you a big harm! It doesn't grow with time, at least not as much as it should have, considering how the inflation rates keep getting higher.
This is why you need to put your money in a place where it can grow on its own. That is called an investment tool; you can invest your money in different kinds of assets. Precious metals and real estate comprise physical assets. However, there are financial assets too, which are consisting of mutual funds, stocks, etc. You could choose the right investment tool for yourself depending on your risk-taking capacity. However, to ensure that you have a stress-free life, you must invest. These investments will help you during the time of a financial crisis or during emergencies.
Sure are a few investing habits that will lead you a no-stress zone life:
Invest regularly
When you choose to invest just that one single time, you lose out on the benefits of compounding. Benefits of compounding are those advantages you get when you divide your investment across a span of time instead of going for a lump sum investment. Let's say, you have AUD 50 to invest and you invest the whole sum in a single go. In this much amount, you bought just 2 units of a mutual fund. Now, let's see, you divide that sum into smaller pockets. You would now invest AUD 5 every month. So, one month, when the market is on a low, you will get more units. Of course, when the market is soaring, you get lesser units for a costlier price. However, for long-term purchases, the average cost would come down to much lesser, and you have more units for the same deposit.
Auto-deduction
It’s evident that regular investment benefits more, however, you can sometimes forget your payment dates. This can lead to a missed opportunity, but luckily, you will find help in automated deductions. You can use money tracking apps or planners to set your bank account for automatic deductions on the 1st of every month when you receive your salary. Doing so, you don't have to worry about missing your cycle or getting penalties.
Money tracking tools
Not only will money tracking tools help you automate your financial acts, but they will also track the progress of your funds. Apps can send you notifications and updates whenever the market crashes or recovers. They will also suggest the right tools for your financial goals.
Diversify your portfolio
Since the market is a volatile place, you should never really put all your eggs in the same basket when it comes to investment. You should choose precious metals to get stability in your financial portfolio. Precious metals like gold can help you survive during the market cycle’s rough phase. To buy gold, click here.
Insurance first
Though insurance would not grow your money (some may), but it can save you a lot of money. With health care and basic amenities getting skyrocket expensive, you should not rely on your income solely. In the event you need healthcare, you should be prepared. Your insurance can help you save on emotional as well as financial turmoil. You should get a proper insurance scheme for your health, vehicle, and medical needs that would spare you a lot of stress in the situations where you need financing.
Don't panic withdraw
The last but certainly not the least helpful! Often, investors end up just liquidating their funds when the market starts fluctuating. However, when you transact prematurely, you may have to pay some exit fees or higher tax rates. This can only lower your profits. Moreover, if you just believe in your decisions of choosing to invest, the market would eventually recover, and your precious assets it will get you the benefits you calculated.