When we hold money and intend to invest in any investment instrument, each potential investor must be able to determine how much money to invest and how long it will take to invest in the short term or long term, so that the funds/money owned can be used for other purposes. . In this thead (Tutorials and How To's) I will discuss 3 money rules for investing or make money through money.
1. Evaluation of Cash Needs
Before investing, evaluate your money first, whether you will need the money in the near future, for example a birthday party, a wedding, buying a new motorbike or a new car, etc. If you need the money for less than 5 months, you should not invest but save money. in bank savings or 3 months bank deposit. If you force yourself to buy gold, for example, even though gold is liquid or easy to liquidate, gold is a form of long-term investment. so that when you need the money, while the price of gold hasn't gone up, and you have to sell gold below the purchase price, resulting in a loss.
2. The second evaluation is separating the need for money for more than a year, so your money will be idle for more than a year, so it will be better if it is invested and will make returns, you can invest in 12-month bank deposits, short-term government bonds, money market mutual funds etc.
3. Evaluation of long-term needs
In this third stage, it means that potential investors already have savings, emergency funds, short-term investments and have idle money for more than 3 years. for example you have a plan to buy a house in 2030, so you have a long time of about 6 more years then you can allocate your money in long term investments such as gold, stocks, capital market mutual funds, cryptocurrencies etc.
Investing will make your money bigger, and the potential profit from capital gains and compounding effects. But you have to choose an investment instrument that suits your profile. If you choose a high profit potential, it means that there will also be a high potential loss. so you need to invest wisely.
1. Evaluation of Cash Needs
Before investing, evaluate your money first, whether you will need the money in the near future, for example a birthday party, a wedding, buying a new motorbike or a new car, etc. If you need the money for less than 5 months, you should not invest but save money. in bank savings or 3 months bank deposit. If you force yourself to buy gold, for example, even though gold is liquid or easy to liquidate, gold is a form of long-term investment. so that when you need the money, while the price of gold hasn't gone up, and you have to sell gold below the purchase price, resulting in a loss.
2. The second evaluation is separating the need for money for more than a year, so your money will be idle for more than a year, so it will be better if it is invested and will make returns, you can invest in 12-month bank deposits, short-term government bonds, money market mutual funds etc.
3. Evaluation of long-term needs
In this third stage, it means that potential investors already have savings, emergency funds, short-term investments and have idle money for more than 3 years. for example you have a plan to buy a house in 2030, so you have a long time of about 6 more years then you can allocate your money in long term investments such as gold, stocks, capital market mutual funds, cryptocurrencies etc.
Investing will make your money bigger, and the potential profit from capital gains and compounding effects. But you have to choose an investment instrument that suits your profile. If you choose a high profit potential, it means that there will also be a high potential loss. so you need to invest wisely.
