Many people put their money in the hands of financial analysts, fund managers, and other experts so that their money can grow. Studies have shown, though, that in the vast majority of cases, a person can get the same return as a professional. But when most people are told this, they say that they don't know how to invest their own money well, and it is said that this is because they don't know enough about money.
So, the most common question is how someone can learn more about money. So, this article will list three easy ways that anyone can start to learn more about money.
First, the best way to get started is to look through an online investing dictionary and learn some basic financial terms. You can learn the meanings of basic financial terms at www.investopedia.com, which is a great place to look. This will help you understand financial writing better. You should put in some time to learn the terms that have to do with the stock market first, since these are the ones that are most often used in the news when financial analysts talk about the state of the economy.
Second, once you know the basics of money, you can move on to reading the business section of the newspaper. Some of my friends read the news about movies and maybe a little about crime, but they stay away from the business news like the plague. These are the same people who complain that people don't understand why there have been more IPOs lately. It can be scary for someone who has never done it before, but over time you will learn more about the market you are in and how it works.
Third, a quick way to learn more about financial terms is to listen to the financial news every morning before you go to work. This could happen on the radio or the TV. Remember to take with a grain of salt what analysts say in the news about stocks and shares. Sometimes the stock moves in response to what they say, and scandals have shown that sometimes the stock moves in the opposite direction of what they tell the general public.
After doing these three easy steps every day, you will start to learn more about money. You can then subscribe to Forbes and other financial magazines or newspapers like the Financial Times to feed your growing interest in money. If you finally get to the point where you want to learn more, you might think about getting your MBA or CFA.
In the end, there is no end to the search for knowledge in the financial world. Every so often, new financial instruments are made, and it can be hard to keep up with all of these changes. But starting is very important in a world that changes quickly. Once you do, you can manage your own investments better and with more confidence.
All rights reserved. Copyright (c) 2006 Joel Teo. (You may publish this whole article as long as you include the following author's name and only live links.)
