|Done With Studies? How to manage your money starting from first salary.|
- Stock markets have rallied sharply. It’s very easy to feel that markets are the place to make a quick buck. But this not true. Its tough to consistently make money in stock markets. Period.
- You might think that because markets are continuously rising, there is no risk in stocks and it will continue going up. This is also bull shit. Higher (& quicker) the markets go, riskier it gets.
- No matter what your parents, new colleagues or friends tell you, just buy a simple life insurance Term Plan before investing even a rupee in stock markets. Do not go for endowment or money back plans or ULIPs.
- Do not buy stocks now. Its not a very good time to start investing. Just wait for a while now.
- But if you still want to go ahead and buy stocks, keep a small amount as your ‘play-money’. Use this money to buy shares you want. But…do not add any additional money even if your investments become profitable from the very first day.
- And even if you do invest this play-money in stocks, try to invest them only in shares of good companies having predictable businesses or pick stocks for really long term.
- Start paying off your education loan as soon as possible. (if you have it)
- Do not use credit cards just because it gives you reward points.
- Start investing in good index funds via SIP mode.