Investment 101 for Young Professionals

Thinking of future revenue that does not rely on one’s career should be started as earliest as possible. Investment works like a tree. When you plant the tree in the right place with right care, you can reap what you sow in the form of profits.

The ideal age for a professional to start investing is as soon as in his/her 20s. Mistakes and unfortunate events of investment show its impacts after approximately five years. Now, let us discuss an imagined case, where a 25 years old office worker decides to invest in a startup. Five years later, the start-up goes bankrupt, but because the person is in his/her 30, which is still a productive age, he/she has a second chance.

In this writing, we are going to learn what are the fundamental factors that a young professional should consider before deciding to invest his/her capital.

Stock-market can be a safe playground

Stock marketStock market investment can be safe and assuring. But of course, it depends on whether you know how the stock market works and the risk of your goal. Nothing is safe when you are shooting blind.

There are two risks that you must understand before buying a stock. First, it is the systematic risk. This risk affects the whole stock market system. When the whole market is down, yours is also down. But there is the recovery cycle to this disheartening economy phenomenon. The second risk is the unsystematic risk, which is heavily affected by the performance of the company you are investing in.

The great depression was the example of systematic risk, while the low sale of a start-up product is the example of unsystematic risk. Both risks can be calculated, and forethought, but those skills require clever reading and profiling.

Investing in property is definitely a must

propertyOnce you have made enough money to apply for a mortgage, do it. And if you do not have any plans to create a family anytime soon, prefer the commercial property instead of the private one.

Commercial property can bring you passive income, especially when it is in a strategic location with high traffic of visitors. You do not need to be bothered with retirement plan if you have enough commercial property.

But to claim for firm legal ownership, you might need more than a healthy deal. Consider hiring an estate attorney, whose law practice is specialized in real estate business. A property agent can only provide you with fast documents and easy negotiation, but they cannot handle the legal risks that might appear in the future.

An estate attorney is also the best partner to consult your property investment plan because the commercial tax can be quite a trouble.
Be an open mind investor and take all of the nourishing information you can get, especially the legal-related information, and do not hesitate when the chance and the momentum is good.

Never rely heavily on one investment

Locked InvestmentAllocating all the budgets you have on one form of investment seems to show determination and dedication. But in reality, it is very dangerous. No credible financial gurus have ever suggested their clients to invest just in one place. Because once it fails, you will lose everything.

Therefore, playing on the stock market while still having passive income from the commercial property sounds like the wisest way to invest.

How to Deal with Unmanageable Debts

Debt2

Debts can be caused by various reasons, and once they pile up, discussing ‘Why’ should be the least of our concern. It is more important to think of the solution, rather than to think about the reasons for the problems. There is nothing we can do anymore about what has been done.

Getting overwhelmed by debts might show subtle symptoms, such as tight income and excessive credit card deduction. The impacts might not go to you directly, but in the long run, you cannot allocate your budget to save for retirement or to have investment. Once these symptoms occur, it means that you have unmanageable debts which require immediate attention.

Here is the guide for you to deal with those debts.

List your debts

EvaluationThe first step you must do if you want to pay off your debt is to know which debt is the most overwhelming. Check the one that has surpassed payment deadline and had the most penalty interest. Calculate how much you make per month and see if there is a chance for you to manage to pay your debts off.

List your valuables

Do not preserve your valuable stuff. If you do not want to lose your valuables, you should not have made the debts in the first place.

Make a list of your possessions from the most to the least expensive and sell them immediately. It is better for you not to be able to watch TV anymore but you can get some of your debts covered.

But it is important not to sell all of your valuable belongings at once because it might drastically reduce their values. Try to calculate how much you can get from selling the valuables together with how much money you can get from a monthly salary. Find out if both sources can cover your debts.

Consider applying for debt consolidation loan

Debt ConsolidationDebt consolidation loan is intended for those who have no other ways of paying off their debts. In other words, it is a finance program for those who owe money more than they can make.

Debt consolidation loan gathers all of the debts into one place, and allow the debtor to pay them with ease. But this loan has very high interest. The creditor will still look at the applicant’s portfolio. If there is a history of bad credit, then it will be unlikely for the applicant to get a consolidation loan.

Do not be afraid of making more debts in the future

DebtTo establish a company or to gamble with a potential investment might cost us money more than we can afford. Getting a loan is the most common way for an entrepreneur to get a fund. In conclusion, there is nothing wrong with applying for a loan. But what should be carefully thought of is how to manage the debts properly.

Good credit will lead to easy loans while getting bad credit is like being black-listed by the banks. When you have unmanageable debts, big chances are you are getting bad credit. And paying off your debts alone will not bring you a good debtor reputation. You should prove yourself as a worthy debtor by getting a loan again, but this time, you should manage it carefully.