Skip to main content

6 Simple Tips for Better Money Management While Investing

money management
6 Simple Tips for Better Money Management While Investing

Investing is always scary, especially for beginners. Investing during a global recession can be downright terrifying. That’s why using common sense is more important than ever.

In this article, we will share 6 easy tips for better money management for investors. Many of these hints are also recommended by CNN, Fortune, and Money.

1.Invest on a schedule.

Sticking to a schedule is good advice for many of life’s pursuits. Every month, put the same amount into a mutual fund. You will be able to keep track of your money better. Plus, this allows you to pick up more shares while they are cheap and fewer when they are expensive.

2.Take multiple investments.

Your mother probably told you not to put all your eggs in one basket, and she was right. Diversification cuts back your risk. Of course, you can never totally get rid of risk, but mixing up your portfolio helps.

Please don’t invest solely in company stock. If the company takes a dive, so does your retirement plan. Company stock should be only 10% of your portfolio, no matter how much faith you have in your business.

3.Buy foreign stocks.

This fits in nicely with the second tip on our list. Yes, the global recession has hit the entire planet, but buying overseas stocks is still a smart move. You should invest 20% of your money abroad, at the least.

4.Spend time with other investors.

It’s always smart to pick up advice from other players in the game. If you network with other investors, you can hear about new opportunities early through the grapevine. Even if you live in a remote area, you can join online investing forums, such as

5.Feed your 401k.

Place as much money as you can into your 401k. Your company might match it dollar to dollar, at least to a certain point. Or, they might match 50 cents on the dollar and a percentage of your salary. Either way, you’re getting free money to fund your future retirement.

And please don’t cash out when you leave your job. You’ll cough up a 10% penalty as well as income taxes. Plus, you’ll miss out on tax-free growth later.

6.Don’t make any investments you don’t understand!

It’s sad to think of how many people buy investments or take out credit cards without finding out any of the important details first.

Don’t allow a financial planner, broker, friend, or agent pressure you into buying an investment that doesn’t make sense to you. Ask them focused questions and take notes. If you just don’t get it, skip that investment.

This applies to just about anything, from credit cards to home mortgages. After all, a credit card is a financial investment also, so read the fine print. Do you know the APR?  Do you understand how the rewards program works? Good money management is all about staying informed.

Yes, many of the above tips are pretty obvious, but as French author Voltaire famously said, “Common sense is not so common.” Sometimes good investors make bad money management decisions because they’re pressured by other people, in a bad financial position, or just misinformed.

Thanks to Sierra Dawson for sharing some simple tips for better money management.  She says your common sense is one of the most powerful money management in your arsenal, so don’t underestimate it!

For more information better read Fisher Investments press to gather great advises on future investment.

Popular posts from this blog

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare

Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…


NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.

The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:

Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.