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Inflation is one of the most pervasive economic problems in the world today. It’s how we slowly lose our buying power. If you want to get ahead and make your money work harder for you, these ten tips can help.
1. Create a Future Value Fund
Before you can budget, you have to determine how much money you will need in the future. I don’t mean how much it will cost to pay for college, or what bills need to be paid during this period. I am talking about earning income from the stock market and then saving for retirement.
When starting an investment plan, it’s best to do it this way. Have an emergency fund of 5–6 months of expenses in a savings account so that you can get by without putting more money into the markets for several months.
Then build up your portfolio with as many asset classes as possible: bonds (bills), stocks (stocks), REITs (real estate), etc.
2. Keep Your Portfolio Simple
If you are just getting started, it’s best to keep your portfolio as simple as possible. When you first begin investing, you don’t want to exceed 10–15 different securities. It is difficult enough to keep track of so many companies and investment options without adding more into the mix.
