Investment Journal

If you don't want to work for money all your life then you should learn how to invest. Investing makes your hard-earned money work for you. Putting all of your money in the bank is not the only option. There are different types of investment instruments that you can use to maximize the earning potential of your money. If you're only planning to save for the short-term and think you're going to need the money in six months or less and you're saving it for emerngency fund then the bank might be suitable for you. But if you're planning to save for the long term, saving in a bank might not be a good idea. Why? Because bank's annual return rate(3%) is not enough to beat the inflation. In mutual fund, its possible to earn 10-30% annual return on your investment. Stocks, currency trading, futures and options can give you more than 30% or even 100-300%. But of course, there will be some risk included, but did anybody ever become successful in the world of investing without taking any risk?

For some people, investing is risky but other people think investing is risky only if you don't know what you're doing. Many also believe that to get higher return means you have to take on more risk. As the best-selling author Robert Kiyosaki said: "There are three types of investors in the world. They are : People who do not invest at all, people who invest not to lose and the people who invest to win." He said that those people who do not invest at all expect their family, the company they work for or their government to take care of them once their working days are over. People who invest not to lose invest in what they think are safe investments and these people have the saver's mentality when it comes to investing. The third type of investor who invest to win are willing to study more, want more control and invest for higher returns.

There are a lot of people who want to learn how to invest, who want to understand stocks, bonds, currency trading, futures and options, real estate and mutual funds. I made this blog to give you the basic of these investment instruments and how they work.