Newbie in the finance world

chiragparekh

Hello Experts,

I am Chirag, 24 years old male, from the India. By profession I am SEO expert who provide the website ranking in Google. I am earning quite enough but I don’t know how to invest and increase the money. I am on the stage where I have to be independent and more responsible towards the life and my future life partner. I know very few finance terminologies hence I can’t dive in the finance world without having slightest knowledge of it. Before I join this forum I searched top 10 finance forum and get moneysavingexpert as #1 in the list. Hence I am expecting much from this forum and forum experts. Can you guys please help me to understand how beginner can start investment and shape his future.

I am sorry if I have asked very basic question.

atush

I guess our problem is that our knowledge is mainly UK based. If you are resident in India (ie domiciled and pax tax there), then your options (due to local products and interest and tax rates) will vary.

Are there not any Indian financial websites?

lr1277

Hi

You don't say whether you are based in India or the UK. I am afraid I know nothing about investments in India and only a little about investing in the UK.

Whilst you have some good motivations towards investing, I would suggest you read a couple of books first:
Rich dad, poor dad by Kiyosaki
Rules of wealth by Richard Templar

These books will give you the why and wherefores of investing. Not the how's.
As to investing, don't just think shares. In the UK you can invest in bonds, property, etc.

My first suggestion is you read the above books.

The next think is you consider pots of money. This for timescales.

1st pot is for short term needs. An instant access savings account for emergency money. This should have enough money to cover your expenses if something bad happens like losing your job or you have a major household expense. You should aim for money to cover 3 - 6 months of expenses.

2nd pot is for medium term savings/investments. This should be for things like cars, buying your own house. Timescales about 1 to 10 years.

3rd pot is for the long term.This is usually some kind of provision for old age. For some people a pension is the solution. For other people buying and renting out property. You have to do what you are comfortable with.

I would set up pot 1 immediately, if you don't already have it. When pot 1 is full, then start filling up pot 2.
If you are going to use a pension, then set up pot 3 immediately.
If you are going to use the property route, then, I would start it after filling up pot 1.

Hope that helps.