I am currently new to finance, I understand the basics and I'm totally confused about lots of financial issues. I'm mostly interested in building corporations which means investments.However, I am not on to stock markets that much, I think it's just not for me because I don't understand it yet, I tried to read books but all of them are silly, i can't figure out what is a volume or that number 50 or 54 ? and when they explain it, they make me feel stupid. I have no experience at all and soon I'll turn 18 so what's the best way to start out, any recommended books ?
- Start by developing a habit of saving some percentage of your income. 30% is a good number to aim at.
- Next, create a buffer for emergencies. For example, if you believe that you need atleast $3000 for sudden emergencies, try to keep this money at hand in the form of Fixed Deposits at your local bank.
- Once you have the minimum buffer in place start working on investing in mutual funds, insurance and other financial devices. Talk to your accountant to find the best way in which you can save tax.
The best way to start out is to know that even the experts typically under-perform the market, so you have no chance. Your best bet is to invest in diversified funds, either through something like Betterment or something like Vanguard's ETFs that track the markets. Buying individual stocks isn't typically a winning strategy.
I'd suggest looking at something like the Dummies series of books for this.
- Personal Finance For Dummies
- Investing For Dummies
- Mutual Funds For Dummies
Sometimes the books are combined into one big book. This would be the best bet. It's were I started. Every time I wondered something I just looked it up and learned.
They are perfectly fine for the novice.
Hope this helps.