Things to consider before Investing Oct 10 '08    Write an essay on this topic. Tweet Popular Products in Books Mildred D. Taylor - Roll of Thunder, Hear My Cry: A Literature Unit From $8 Olivier Dunrea - Ollie From $7 The Bottom Line With great power, comes great responsibility. yeah, right! This is a bad timing! Before considering investing, answer the following questions first. Guidelines for Investing: 1. Why do you want to invest? Is it for business purposes? Capital requirements? For future spending? College fund? House and Lot? Specify why you want to invest. In my case, I invest because I want to retire early and in order to do that, I need to save now. 2. What are you going to invest? Money is the most common thing to invest, to buy stocks, for capitalization. it's universally recognized form of exchange. Others consider time as an investment. For me, goal-oriented individuals are the ones who invest time. Time is essential because time is money. 3. How much are you going to invest? Set a limit of how much are you willing to risk. Remember that investments are not guaranteed but it can be rewarding. You can't invest all of your money and time. You need to set aside for your immediate needs too. You can only risk what you are willing to lose. Whether, $100 or $1,000, you need to be definite and let it grow. 4. Where are you going to invest? Will it be foreign exchange? Stocks, bonds or mutual funds? Angel investing? Additional capitalization? You decide. There are PROS and CONS in investing in these instruments. You have to analyze and weigh your decision. No one can make that for you. Financial advisors are well, advisers. They can't tell you what to do. They will give you specific information you need to know about the companies or instruments you want to invest into but the decision is still yours. 5. How much are you going to make from your investment? Return on Investment (ROI) In analyzing your profits and losses, you have to understand how much are you going to make from your investment. If you know you're going to lose, why are you going to invest? Read the Terms of Agreement of the proposed or signed Investment Contracts. Return on investment (ROI) are usually expressed in Percentage (%). 6. How long are you going to leave your investment? (terms) Set your limits. Is it 5 years, 10 years, 20 years? Brokers will handle your money and will tell you where your money is and what happens to it. It's up to you if you want to sell it, keep it, or spend it. 7. What will you do with your earnings? Re-Invest it. Deposit. Use as capitalization. I think this is self-explanatory. Investing is really complicated. There are certain things you need to understand about investments before considering it. You also have to understand that once you invest, especially in stocks, you are part owner of the company. Obviously, you want your company to be profitable so help out whenever you can. Keep in mind that you are responsible for your decisions. You have to choose well.

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