Photo by Muhammad Rizwan on Unsplash

After we graduate from college or university, one thing that we will have in mind will be to find a job and start making money. Yet, it is also important for graduates to start learning how to invest in their future and it may seem challenging to find a good place to invest in.

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All investors will want profit but bear in mind that with every profit there are always risks involved. Investing is all about the long-term so don't expect to gain much in the short-term. Unless if you are running a business of course.

1. Invest with knowledge

One way to reduce the risks in investing is through knowledge

It is recommended that all the fresh graduates who will start working very soon to start their very first investment by gaining as much knowledge as possible. There are many ways in which you can do this:

  • Buy books or e-books
  • Attending class or seminars on how to manage your money and investments 
  • Read websites related to finance and investments like Business Insider and investing.com 
  • Get to know people who have been successful in this industry for a long time (Networking)
  • Read social media like Facebook, Twitter and more

These are just some of the list and it can be many more but simply by doing the above, you can see the difference every time you want to invest in something.

2. Save for the rainy day


Some individuals must be as thrifty as they can since most of them that started to work and have their very own income are at risk of money management issues.
Therefore, you are advised to be more thrifty in the early phase of your working life regardless of you having a lot of money that you can spend. This is because you can use that money to invest in anything like real estate which will require you to have a lot of money. You will need that money for other things in the future like getting a car and preparing for whatever things that may happen in the future like inflation for instance.

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3. Always start small


Always start with something that you can afford and until then you will realize which investments suit your budget as well as your preference. There are many ways that this can be done as there is an abundance of investments to choose from. As a new graduate who just started their first job, we advised that you only invest a small portion of your income. The return might be small but it is better to play safe as you don't want to risk losing a lot of your money at the start. Some investments which do not require a lot of money are like Unit Trust. 

Aside from investing in Unit Trust, you should also start saving in case of emergencies, have a medical plan as well as other commitments which will also be a necessity for you like owning a car. Thus, spending a small amount of money will not seem like a burden at all.

4. Reduce the loans

We all know that when it comes to purchasing a car, it will be hard for you to pay in cash and instead you have to resort to loans. It is ok if you want to purchase a car with loans but be sure that the loans that you have to pay back will not be of such a burden to you. 

The function of a car is to get you from one place to another

So if you think you want to buy a Ferrari for the sake of impressing others then you just put your money in danger. At the same time, it will also be hard for you to invest in anything.

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5. Always make a comparison


Before you make a decision to jump into any sort of investment, you should always compare which products suit best for you.
Some of the comparisons that can be done are as follows:
  • Car loans with the lowest interest rate
  • Unit trust fund with the best performance 
  • The protection plan that is worth your money 
To be fair, it is not that hard to make a comparison of which investments are the best for you since you can easily access the internet to find out. Besides, it is also important that you get other people's views who have experience in the investment world. It will take time for you to find the best investments available out there but with hard work and dedication, you will be able to save a lot of money.

Have you started making an investment yet? It's never too late to start