If you're reading this post, chances are you are a first time investor. Welcome! Investing can seem complicated but it is infact very simple if you understand three core concepts. We call these concepts "smart investing principles" as they are your guide to successful wealth creation.
These are NOT principles that we made up. In fact, these are time-tested, proven principles of building wealth. Millions of people have followed these principles successfully and have become rich. Some of the most famous investors in the world such as Warren Buffet advocate these principles to be followed.
Successful investing requires you to know WHAT to invest in, WHEN to invest and HOW to invest. The smart investing principles will guide you in answering these questions. So here they are:
SMART INVESTING PRINCIPLES:
WHEN TO INVEST?
- The best time to invest was yesterday – the second best time is NOW. The sooner an investment is made the better. This is because of a concept known as the miracle of compounding which can make you wealthy.
- Compounding works like this: you invest a certain amount and earn a return. You re-invest that return along with your initial investment. Going forward, you will earn a return on your initial investment plus the re-invested return. This continues each time you re-invest your earnings, compounding your investment.
- Compounding works magic over a long period of time. Einstein is quoted as saying compounding is the 8th wonder of the world
HOW TO INVEST?
- To get the real benefit of compounding, you have to invest consistently.
- Save and invest a bit of your monthly income after expenses each month regularly and build financial discipline
- Ideally you should save and invest at least 20% of your income every month. Adjust this figure according to your needs.
WHAT TO INVEST IN?
- Own top-tier mutual funds based on your risk profile. Mutual funds are one of the best investments one can make. There are two types of funds: equity funds and safe funds
- Equity funds invest in all the best profit-making companies and give you an ownership stake for a small fee.
- Safe funds such as income and money market funds invest in government or company backed financial instruments.
How to apply these principles in Pakistan?
Labeeb is developed by world-leading investors for Pakistan and features only the best Islamic mutual funds for investment.
We aim to secure the financial future of millions of Pakistanis by providing access to smart investing in an easy and convenient way.
Join hundreds of other Pakistanis and sign up for the waitlist for the much awaited launch of Labeeb!
The best time to invest was yesterday. The second best time is NOW. Sign up for Labeeb and secure your financial future!