Money and Finance

 

If you’re aware of how important it is to create a diversified investment portfolio, in order to take control of your future, continue reading to discover a few handy tips on how to go about establishing a diversified investment portfolio.

5 Invaluable investment tips:

1. Make sure to accumulate at least a few different asset classes to decrease your risk – Instead of investing all of the money which you’ve earmarked for investing in ordinary shares, it’s a smart move to purchase a variety of asset classes. As an example, you may want to purchase ETF shares and shares in property equity and private equity as well as ordinary shares. When it comes to investing, it’s important to avoid putting all your eggs in one basket, as if one asset decreases in value, your portfolio won’t be too badly affected.

2. Opt for investments which boast a competitive dividend yield and a share price which steadily increases – In order to receive two forms of income dividends and capital gains, it’s also a smart idea to choose investments which offer a competitive dividend yield over 5% as well as a share price which steadily grows each year. To find out how a company’s share price has performed over a five year period, simply find a five-year graph which illustrates the company’s share price over a five year period. Ideally, the company which you should invest in should have a share price that is higher now, than it was five years ago. While it’s okay if a company’s share price fluctuates slightly, which is normal, it’s important that overall the company’s share price continues to increase from year to year. Unless of course the company which you’re interested in investing has recently been listed on the public market and has no share price data to work off.

3. If you choose to invest in a managed fund make sure that you’re well aware of any fees that may be associated with your chosen fund – Some individuals choose to invest a portion of their investment funds in managed funds which are actively managed by investment experts. Especially individuals who don’t enjoy tracking their investments themselves. However, if you chose to invest in a managed fund, keep in mind that there will be fees associated with your investment. So it pays to choose a fund that doesn’t feature high percentage fees.

4. Don’t sell your shares too quickly – Many individuals make the critical mistake of selling their shares in a company if the share price drops suddenly. However, if you still believe that the company which you’ve invested in will experience success in the future, it’s a wise idea to keep your investment. As it’s likely that the share price in question will increase again, within a couple of months. –

5. Reinvest your dividends – Make the wise decision to reinvest all of the dividends which you’re paid out.

So if you’re focused on building your passive income and your investment portfolio, it’s a wise idea to keep all the investment tips listed above in mind.

 

 

Contrary to popular belief, saving extra money doesn’t have to be a challenging task. In order to discover a few fuss-free techniques to save money, simply continue reading!

How to Save Money the Easy Way:

1. Always pay your bills on time – It’s well worth keeping in mind that if you remember to pay all of your bills on time such as your phone bill, your internet bill, and your electricity bill, that you won’t be charged any late fees. In some cases, you may actually save a small percentage discount off your bills by paying your bills in advance. One way to make it a little easier to remember to pay all of your bills in advance is to set up monthly automatic payments using your online bank accounts.

2. Consolidate any debts which you may have into a single loan – If you currently have multiple debts such as credit card debt and car repayments, it’s well worth consolidating all of your debts into a single loan. As you should be able to decrease the interest which you pay each month as a result of consolidating all of your debts into one easy to manage loan.

3. Save any unexpected money which may come your way – Instead of giving in to the temptation to spend any extra money which may come your way, it’s a wise idea to save any lump sums of money which you are given. Examples of lump sums of money which you may be given include inheritances, tax refunds and end of year work bonuses or performance bonuses.

4. Work as a freelancer in order to bring in a second income – If you’d like to increase the amount of money which you save each year by tens of thousands of dollars it’s a great idea to work as a part-time freelancer, in order to bring in a valuable second income. As an example, if you have web design skills, you may want to moonlight as a professional web designer. While if you have a knack for photography, you may want to take a couple of photography classes in order to start working as a freelance photographer during your evenings and weekends. No matter what your skills and interests are you should have no trouble finding a freelance part-time job which suits your experience, skills, and interests. As a bonus, if you’re lucky your part-time may turn into a full-time job.

5. Opt for generic brands over well-known brands – One way to halve your grocery budget is to start shopping for generic brand items instead of more expensive items from well-known, heavily marketed brands. You may even be surprised at how similar the quality of generic brand products are to the branded products which you already know and love.

6. Be mindful of your electricity usage – Another way to decrease your spending and to increase the amount of money which you save each month is to become more mindful of the electricity which you use. As an example, you shouldn’t leave lights on parts of your home that no one is currently using.

No matter why you’re determined to save extra money, it’s well worth testing out all 6 of the fantastic savings tips which are listed above!