For all the ambitious, young and would-be investors!

Here are some quick and useful tips for all the young and would-be investors:

1. Deal with the debt first: You need to deal with all your debt first as it really makes a difference, For example: if you’re paying 17 percent on a credit card, the first place to “invest” is to wipe out that debt. While stocks have outperformed many other types of investments over time, their long-term average return is around 10 percent. Paying off a 17 percent credit card is like earning 17 percent with no risk – a much wiser choice.

2. Separate short-term and long-term goals: For most people, saving is different from investing – you save for things you want in the near future, say within a few years. Investing is long-term: money you won’t need for five years or more. For short-term savings, keep your money safe.

3. Don’t be afraid to start small: A lot of people think you have to be rich to buy stocks. You don’t. In fact, starting soon is much more important than starting big.

4. Ask other people what they do: It never hurts to ask, especially if you’re new to investing. Never guess, and definitely don’t invest based on tips or hype. Listen to trusted, experienced investors instead.

5. See what your employer offers: Many companies have retirement plans, PFs etc, which you can buy into straight out of your paycheck. This is indeed a good way to save.

Source:moneytalksnews.com