Money Investing

Before much deeper cultivate the field of investment, start to recognize the type of investment your money. Money Investing is a word that is familiar to our ears, but whether the nature of the investment itself? Investment is often defined as the placing of money or capital to yield or interest by way of buying property, stocks, bonds, etc., but in general the investment can be understood as taking / use of time, money or energy for the benefit / benefits in the future. So basically investing is "buy" something that is expected to be "resold" in the future with a higher value.

Why do we need to invest? There are many reasons for this, one of which is preparation for the future as early as possible through the preparation of plans that are tailored to the needs of today's financial capabilities. As we know over time the value of the currency can be reduced because of inflation, ie for example rising prices of goods and services, inflation is one of the main reasons why we need to invest, either the funds or assets that already exist or will we have to "value "it can be maintained and certainly expected to increase. From the description above can drag the main reason for investing 4 things are:

The need for future or current needs that can not be fulfilled

There is a need to protect the value of assets owned

The desire to add value to existing assets

The existence of Inflation

Investment Risk

Risk is part of the investment, because the situation in the future is also uncertain and can not be predicted accurately. Investment results obtained may not be in line with expectations, even opposite and yield loss, because one can not completely circumvent the risks posed by the uncertainties, the investment in this context that a part of life, intentionally or not people always invest, learn, work and do business can be seen as an investment, the investment can be seen as a process of making a choice, not only to increase the wealth but also maintain and protect what you already have.

TYPES OF INVESTMENT

Savings and deposits

Having a savings account is the simplest way of investing, practical and easily, supported by liquidity and ease of retrieval at any time, the bank is also relatively safe, because until now the bank deposits guaranteed by the government. Banks also provide flowers, large flowers depending on the type of savings with the principle of the greater and longer the deposit funds in banks in general, the greater the interest. Savings deposits similar to themselves, but to a specific period, interest on deposits offered at relatively higher than savings interest, but if the deposit is taken before the time period will be charged a penalty.

Bond

Bonds are payable to a specific period. Bonds can be issued by a corporation, government or other agencies. Benefits of bond principal is capital investment plus interest coupon, the coupon rate is a percentage of the amount has been determined and is generally higher than the interest rate or other securities that are considered safe, given the risk of a relatively higher bond. Coupon payment made at regular intervals, eg 3 months or 6 months or annual. Payments made its own investment principal when the bond matures, the date on which the bond expires.

Stock

Stock is proof of ownership (equity) instead of debt. Buying a stock means having a portion of the company, meaning that you also share the risk with the issuer (issuing shares). When companies make a profit, some will be distributed to shareholders as dividends.

Opening a new business

Opening a new business is also a form of investment. The reasons why people open new businesses, in addition to the potential of the infinite can in order to do the job is really like, develop individual creativity and also achieve financial independence. Keep in mind that the risk of opening a new business is relatively large, business loss can be up to the bankruptcy could be more than spending capital. In addition it also takes time dedication, skill, seriousness, determination and perhaps talent.

Property

One option that is relatively safe, as long as there is no risk of political upheaval, the house / land will not be diminished. Also the potential value of their investment in the form of increased sales and proceeds from the lease. Investing in property requires a relatively large amount of funds and also the long-term commitment, because although its value will continue to rise, the liquidity constraints resale property that is not easy and takes a long time.

Precious Metals

Purchasing jewelry like gold can also be a means of investment, but can be sold back with relative ease, the price of gold has continued to increase over time, although there was a lower selling price to the value that has been used. Purchasing gold also protect against currency depreciation, as gold prices increase in line with inflation it is similar to deposit funds in a foreign currency, they both protect from the risk of currency decline.

Kolektiva

Investments in the form of a collection of objects such as works of art, although many non-economic considerations in investing in this area, but keep in mind that the value for the goods kolektiva although it tends to go up but not measurable, and liquidity constraints where it is difficult to sell back and estimate the resale value.

Futures Market

This market is emerging from the onset of forward transactions, ie transactions performed today but the payment and delivery of commodities conducted at a later date that has been set. This transaction protects buyers and sellers from price fluctuations are not expected. The time difference between the transaction with the delivery of commodities that can be used for months by speculators to trade in such forward contracts. Speculators are not producing / consuming the product, the contract traded in the hope of profit from future price fluctuations due to changes in supply. Futures market was originally only commodity products, but later spread to the capital markets, foreign exchange and money markets.

Mutual Funds

For someone who wants to invest in the money market or capital market but do not have the skills or do not have the time to invest in mutual funds. Mutual fund is a container that collects funds from investors and then managed by the Investment Manager to the various investment instruments. Investment instruments that can be selected are of different kinds such as bonds, stocks or a mix of bonds and stocks. Besides mutual funds based on short-term debt instruments with maturities of less than one year, namely money market funds.