UNDERSTANDING HOW TO MANAGE MONEY - Part 6

Hello guys, I trust you have been having a great day. I started a topic some days ago on a full guide on how you can manage your money.

In my last post, we stopped at part 5 which will be continue from where I stopped from on the full guide.

Factors to consider before investing to avoid mismanagement of money

Risk and Reward

Risk in investment means the probability to form loss or profit while reward is that the profit gained from the investment. In every investment, there's always a risk that's , the prospect of creating profit or loss. But an inexpensive investor should be ready to analyze the share of the danger and reward.

It are often predicted in reference to the economy at that moment, the community, the govt and above all the stress and provide of what he or she is getting to invest on. If at the top of the analysis, the danger of the investment is bearable then one can further the method of the investment but if the danger isn't favorable, he or she should stop the processing of the investment to avoide loss then change plans or find something else to take a position on and confirm that the new investment is favorable before investing thereon .

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Available Capital

An investor should understand that cash is that the root of investment. He or she should calculate the estimated amount which will be needed through out the investment and compare it with the cash available on ground for the investment.

The investment is sweet to start out if the cash available are going to be enough through out the investment and therefore the investment should be canceled if there's no availability of cash to run it. Though some investors take risks to start out their investment with any amount they need on ground as at that point but its very risk and a game of chance and luck because the time the investment will need extra money , there could be no money with the investor which alone can run down the investment and end in loss.

within the casa of low capital, the simplest solution is to attend till you've got enough capital or find another sort of investment that needs low capital and invest in it.
Weather And Climate Condition
Weather is an climate of an area over a brief period of your time while climate is that the climate of an area over an extended period of your time .

Weather and climate conditions affects the speed at which investments yield. as an example , an investment that involves the assembly of umbrella, cardigan, sweater, etc. tends to possess more sales within the raining season than the season because those materials are majorly utilized in the raining season and thus the demand will increase during that period. So therefore, any investor planing to take a position on a specific product should check the merchandise to be produced in reference to the weather and climate condition of his or her area at that specific time.

He or she us good to travel if it's favorable while he or she should consider investing in another thing if it's not favorable enough to get profit for him or her.

Peoples Review About The Investment

Investors should attempt to learn from peoples views about the investment before investing. it's not very bound to be the primary to take a position during a business. tons if people already did and have their reviews about the investment. a replacement investor should approach the previous investors either physically or online to ask about their review on the investment and their suggestion, advice and guidelines to follow through out the investment.

If their review is extremely good and interested, you're good to start out the investment but if in other way round, one should backtrack to avoid loss.

The Ratio Of Profit to worry

A good investor should estimate the share of profit to be generated and therefore the stress involved through out the investment because some investments requires much stress and at the top of the day, generates little profit. If the expected profit well worth the total stress throughout the investment, then he or she can move on with the investment.

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