To manage your money, you should know about different investment options & situations present in the market. Keep your mind open to the possibility that things can go wrong even if they haven’t before. Distance yourself from your investment decisions, and base them on the demands of the current situation. Calculate the opportunity cost of your investment i.e. the gains you are likely to make by putting in the money in a better option.
Different investment options present in the market
- Insurance: When you get a job, take a term insurance plan to secure your family from any uncertainty that could happen with you. After that you could take a health insurance.
- Recurring Deposit: you should open a recurring deposit account with a bank so that you could get a good sum after a certain period of time. You could further fix this amount (By opening a fix deposit account) in the bank or buy land, building etc.
- Financial Instruments: Financial instruments are also good investment option. Invest your money in the debt instruments or in the equity. If you invest your money in the debt instrument i.e. bond or debenture, it will give you a certain return after a certain period of time whereas Equity is typically assigned for long-term goals for best returns, so don’t let the short-term interfere with your decision. Rely on statistics, such as averages, not just the latest figures, whether it is for fund or stock performance, or an asset class. In equity investment risk is higher; it could also give you higher return.
- Commodity Market: You could also invest you money in commodity market by buying different commodities. You could buy commodities at lower price and sell at higher price or also keep it for long term.
- Investment in land & building : You could take loan from bank to buy land & building and pay it back to banks by monthly installments i.e. EMI
Different Situations in the Market could be
- Economical & Financial Condition of domestic market
- Political Condition
- Foreign condition
- Flood, draught, earthquake etc.