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Friday, March 6, 2020

Where to invest Money in 2020-Financial Resolutions for the New Year


Investment is not just a way to safeguard your money, it is also a sensible option as it helps you gain additional benefits and grow your wealth. Through consistent investment, you will be growing the wealth you already possess. Most investment options known in the market include real estate, bonds, stock market, mutual funds, gold, and other commodities. However, with the age of digitalization, there are additional avenues of investment that are opening up for investors.
With global digitalization, the modes of investing money in financial segments have taken a steep leap. Apart from reformations in these traditional investment segments, there are other forms of smart investments, too, which have emerged as a great way of growing your wealth.
 P2P lending is a great example of this. It offers a great way to gain additional benefits on investment by lending money out to creditworthy borrowers through various reliable online P2P lending platforms, like i2ifunding.com, in India.
Having said so, the new year has just begun, and it calls for being more prudent and sensible with your financial investments for the current year. Here are a few resolutions you can adopt this new year which will help improve the benefits you yield from your investments.
Release yourself from debts and taxes
Before you start investing your money, it is prudent to ensure there are no debts and that your taxes are paid on time. Most investors focus too much on investing their savings in various schemes without realizing that their money should first be used to safeguard their own basic needs. If you have an ongoing loan or debt, make sure to clear it first and then start investing. Also, there is no use investing in great schemes if you have to pay hefty fines for not filing your taxes properly. Pay yourself first and then use the savings for investments.
Do not give in to market fluctuations 
Your financial goals should determine your investments and not market appraisal or downfall. Markets are liable to face crests and troughs, but your goal towards your investments should be governed only through your financial plans, and not the ever-changing market trends. 
P2P lending is a great idea to invest in the new year as it can help you gain additional returns even in tough markets.
Stick to the 50/30/20 rule of financial investment
The thumb rule for smart investment involves 50% of earnings to be spent on necessities, 30% to be spent on desires and luxuries and 20% to be invested in savings for meeting financial goals, after having paid the tax. Following this plan would pave the way for a stable and smooth journey towards meeting future financial requirements.
Again, when planning your investments, opt for p2p lending as it works out to be more lucrative and less strenuous.
Diversify your portfolio
A wise man once said, "Don't put all your eggs in one basket" and the same stands for any investment. While many investors know this and start investing in multiple options like shares, mutual funds or bonds, they don't realize that all these investments are affected by market conditions.
This is where P2P lending can play a key role and can offer higher returns. As a lender, P2P lending provides higher returns than any safe investment in the market.
Time your investment instead of timing the market
Most investors usually tend to invest during the end of the year or just before they have to file their returns to gain tax benefits. Others, who follow the markets and invest in these portfolios take calculated risks to invest large amounts at a particular time hoping to get higher returns.
However, consistent investment has proven to be a great habit for the long term. While there are systematic investment plans (SIP) options for most investment, Peer to Peer lending can offer investors the option to invest fixed amounts at particular intervals and provide similar benefits to lenders.
Define your horizon for each investment
While investors focus on returns and risk appetite, a key criterion that can haunt you later is the investment horizon and lock-in period. Most investors are either heavily invested in a long term or short-term schemes, and this may not be a smart idea. When investing, make sure to define your short-term and long-term investment goals and invest accordingly.
P2P lending platforms can offer various options depending on risk-taking appetite, expected returns and different durations like 2 years up to 10 years.
Closing Thoughts
The key to successful financial planning is to invest as per one's goals, risk-taking capacity and, above all, horizon. One should never go by hearsay; instead, one should do proper research and look for new, lucrative and smart investment schemes like p2p investments, while keeping an eye on market movements at the same time, so as to get maximum returns on one's investments.

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