As a new employee or a member of the working class, you have worked for a while and received a salary that meets your basic living standards and entertainment needs, and you have a little extra savings. You plan to use this money for investment, but you are at a loss when faced with the diverse financial management methods and financial products. This is a common problem for people who are just starting to learn about investment and financial management.
In this article, the author will introduce several investment methods with low thresholds, which will not cause life or even psychological pressure for the audience whose financial situation is still unstable. After analyzing your own financial situation and choosing an investment method that suits you, you can steadily roll out your first pot of gold through long-term adjustments and planning.
In simple terms, fixed deposits are just saving money, which seems to be a "zero-risk" investment. Its biggest disadvantage is that the rate of return is relatively low, and it may not even be able to withstand the annual growth rate of inflation. However, bank fixed deposits are the most stable method of small-amount investment.
If you put $1,000 ( preferably from emergency funds or funds that will not be used in the short term ) in a bank and leave it there for a whole year, you may only get about 0.2% interest ( about $2) on a current deposit, but you may get nearly 2% interest ( about $20) on a time deposit. After all, a current deposit is not considered an investment.
Every country in the world has its own currency. The most common currencies are "US dollar, Japanese yen, Chinese yuan, British pound, Euro, Australian dollar", etc. The exchange rate between currencies is called the "exchange rate". Banks will announce the spot exchange rate of currencies of various countries, so if you are interested in investing in currencies of different countries, you can earn the exchange rate difference by "buy low and sell high".
Assume that the RMB: USD exchange rate last year was 7:1 , and a small investor used $700 RMB to buy $100 USD. This year, the RMB: USD exchange rate is 7.2:1 . If the $100 USD purchased last year is fully exchanged back to RMB at this time, excluding the handling fee, it can be exchanged for $720 RMB. At this time, the exchange rate difference is about 20 RMB, and this transaction is a foreign currency transaction.
Savings insurance is usually divided into "lump payment, 3 -year term, 5 -year term, 10 -year term", etc., and the average rate of return is usually between 2% and 3.5% . Although the annualized rate of return is increased, the non-guaranteed returns are also separated, and there are certain unpredictable factors.
The biggest disadvantage of savings insurance is that the funds are not easy to cash in. Depending on the different savings insurance, if you want to cancel the contract and withdraw the money within 3-5 years, you may face a certain amount of loss, so it is very likely to be a "negative return", which is the higher risk side of savings insurance.
For newcomers and the working class, the pressure of buying "one" stock is definitely great, but now many brokerage firms can help buy one stock and then split it into small shares for sale, so that those who do not have much money but want to try buying stocks can get what they want.
The "fractional share investment" method is suitable for stocks with higher growth potential, but the handling fee may be relatively high. Stocks with higher industry stability are more suitable for buying in the "regular fixed amount" method.
If newcomers want to invest but don't have the energy to do much research, they can choose to buy funds on a regular basis. Just set aside a certain amount of money every month and hand it over to a professional fund manager to achieve your investment goals. Of course, the rate of return depends on the performance of the fund manager.
It should be noted that if you use a fund manager to operate an investment project on your behalf, management fees will definitely be charged. It is recommended that you compare prices from multiple companies before purchasing and select a fund project and investment manager that suits you.
First of all, you need to set a clear goal before you can make a future investment plan. If you just blindly invest, buy when you hear that the fund is good, and sell when you see the stock price drop, the consequence of being aimless will only make the funds in your hands flow away unknowingly.
No matter what channel you invest in, or even if you put it in a bank deposit, there are still risks or uncertainties. Many middle class people often have a mentality of being too ambitious and can easily become "following the trend of investment". Only by establishing a good mental preparation for "investment and financial management, gains and losses" can you remain calm in times of crisis and make steady progress.
Many small-income people feel that they don’t have enough money. How should they invest? After deducting the living expenses, there is really not much left. This is naturally not a good time to invest. However, there are actually a lot of small amounts of money in life that are wasted unintentionally. Therefore, the first step to make small investments is to control the living budget well. Maybe you can get the ticket to small investments right away.
Every investment product, whether stocks, futures, funds, etc., has a reasonable rate of return. Generally speaking, products with high rates of return are often accompanied by high risks. Recently, there are many products that can be invested in small amounts, but if you only see the high returns and ignore the risks that come with them, you can easily suffer a big loss.
The "fixed amount per period" method is very suitable for small investments with low capital, but we also know that persistence is not easy. Once the financial market is turbulent and leads to capital losses, many people will face the choice of whether to continue to persevere. Every turbulence tests investors' decision-making and their familiarity with the market.
There are always risks in investing, even for small investments, so investment funds also need to be distributed, just like not putting all your eggs in one basket. In order to avoid sudden changes in the market that lead to a total loss, it is important to remember to diversify your investments across different commodities.
All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors and you can lose more than your initial deposit. Please ensure that you fully understand the risks involved, and seek independent advice if necessary.