Show Me the Money: Investment 101

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We do not want to work for money forever. As much as possible, we want money to work for us. It is a delight to think that we will just sit back and still earn money. Here in Singapore, everything is possible. We have to grab opportunities before it is long gone.

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We can start by learning about investing. According to Robert Kiyosaki, the author of the famed “Rich Dad, Poor Dad”, the secret of the rich and why they get richer is passive income. Passive income refers to an income one receives from investments. For most of us who were not born with trust funds, investing is a foreign and big word.

For salaried workers, saving is a big commitment how much more investing? We have this misconception that investment requires a large amount of cash and it is only for the likes of Bill Gates or Warren Buffet. The most that we can do in preparing for the future is just saving money in the bank or buy properties. With these, we can only hope that the value will be increased over time.

The question is: can we really get rich and earn financial freedom this way? Though we can survive, we can never thrive. This is the time that we learn everything we can about investments.

The Value of Investing

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Not all Singaporeans know the concept of investing. Investing is a way of setting aside money for something that produces bigger returns in the future. Investing can be in different forms – it can be in the form of buying stocks and mutual funds. Unlike savings, investing carries a lot of risk. However, we have to think that the bigger the risk, the bigger the reward. If we save, it can only yield 1-4% interest but if we invest, it can grow to 10-300% depending on the venture in a matter of months.

Investing is for every Singaporean

As mentioned earlier, we have misconceptions that investment is only for the likes of rich people. It is time that we forget that misconception and try to invest. Investment is for everybody and we can start at any amount. Investing today has made easier for average income earners.

How to start

So, how do we start investing. The first thing that we should do is look for investment options. There’s the mutual funds, insurance plans and stocks. For beginners, experts would recommend investing in mutual funds since it is the easiest and the most popular. If the stock market is appealing, we can at least get a broker.

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