Money is an inextricable part of our lives. We toil to earn money, to purchase a house, to marry off our children, to live, to eat and to save so that we are not destitute at the time of our retirement. The purpose of retirement is to enable you to realise your needs, your requirements through saving and investing your money. It requires you to use your skills, your knowledge and analytical intelligence to make your savings earn more and more money for you. Investment is a jealous goddess. Conscientious and careful investment of your savings would in time ensure that you are comfortable.
Good, slow and steady investment is the kind that lasts. In order to successfully invest, one
should have an investment plan and personal investment objectives. It must also be ensured that the purchasing power of the money saved is not less than its present purchasing power. The purpose of investment differs from individual. One may be saving for a child's wedding as the child grows up. One might save for the child's higher studies. As the need arises an investment plan to suit one's needs and requirements must be devised. Investments sometimes depends on nature of the need. This may be due to fulfill the short term or long term needs of the individual or his family.
The period within which the amount is to be accumulated the rate at which your savings grows the amount you can regularly save and invest
Once you know your objectives are and the time within which you must realise it you must devise a strategy. After having devised a strategy to achieve your objectives you should constantly review your investments because times change and oppurtunities that did not exist earlier may come into being. You may decide to invest some shares in a company.
The company may lose some major contracts and begin losing money. Its result may ne bad. At this time you should review your investment and decide whether you should continue holding shares or sell them. Now you need to rework you strategy. You have to keep regular touch with newspapers, magazines etc., to know the latest position of the company so that you can decide inorder to continue with the already decided plans or to workout new plans.
If you do not have the time to constantly review and analyse information then you should invest in those instruments that are safe and those which assure you of a fair though modest return.
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