The Flawless Finance

"The Big Money Is Not In Buying And Selling, but in the Waiting"- Charlie Munger.

Earning money is important but investing it correctly is equally important. People often get confused with saving money and investing money. Both of these terms differ greatly. Saving money refers to locking your earnings into a safe with zero risk of drowning. Investing the money means making use of money to attract money. The risks associated with investments are high, yet rewarding. However, the recipe of the flawless finance is a way to eliminate these risks to optimum level.

The flawless finance is a combined answer to the three questions-

(1) How to invest?

(2)Where to invest?

(3)How much to invest?

How to invest?

There are innumerous fields and ways to invest. But selecting the one, which is most profitable and easy is an unpredictable job. What an investor can do at his best is Channelizing the investment by mapping and correctly setting finance timing. By doing so you may not be able to select the most profitable path of investment but can withdraw the most profit from any investment. 

Mapping: Investors should first mark out their risk tolerance before investing. It generally varies from person to person. Medium Risk Tolerance usually gives best results with low chances of failure. 

Finance timing: The prediction of right hour to invest and right hour to withdraw is finance timing. A study of market trend before investing gives a good idea of how a market may fluctuate. Investing for a short span of gives high liquidity and low risk but low returns, while long term investment gives less liquidity, less risk and high returns.

Where to invest?

Analyze the demand of the market and figure out what is trending out to the markets. A high demand with ample quantity of products in the market will obviously fetch less output when compared to a demand with less products. Therefore, pointing out new trends in the market along with its demand is necessarily important. Secondly, the market doesn't run on a single demand. There are various fields with various requirements. It is advisable to choose a field of investing which is most familiar to the investor. As an example, a tech-guy should prefer to invest in technology stocks over bank stocks as he is familiar with it.

How much to invest?

It is the most troublesome question to newbie investors as they are inexperienced in investing. One can get an idea of HOW MUCH TO INVEST by making an investment  budget out of the total earnings. It may differ from person to person in accordance with their risk factor. Along with budgeting, allotting an emergency fund to the budget is extremely advantageous. At times, it saves the invests from debt. Higher investments give higher outputs. Still, the quantity of investment is merely a lower extremity whereas real factor is Consistency. Scheduled and regular investment on proper intervals is the key to the flawless finance.