How do people get rich? Hardworking isn't enough nowadays. So, many will answer, we need side income, when need passive income. But, how? Let's first talk about investment! But!(Yea, there always a BUT to restrict you action huh?!). Do you understand what risks you are encounter with, with so many types of investment? What kind of investment is suitable for you?

Risk is essential to investing; no discussion of rerurns or performance is complete without at least mention the risk involved. The difficulty for inexperienced investors, however, is determining where risk genuinely sits and what the variations between low and high risk are.

is the process of using your money, or capital, to buy an asset that you think has a good probability of generating a safe and acceptable rate of return over time. The goal of investing is to make you wealthier, even if it means suffering volatility, perphaps even for years. True investments are backed by some margin of safety, often in the form of assets or owner earnings. The best investments tend to be "productive assets", such as stocks, bonds, and real estate.

Typically, saving money should come before investing money. Consider of the foundation on which your financial is built. The reason for this is simple: unless you inherit a substantial sum of money, you will need to rely on your savings to fund your investments.

As promised, this time we speak about net worth. Net worth is the amount by which your assets surpass your liabilities. To put it simple, net worth is the difference between what you own and what you owe. You have a positive net worth if your assets surpass your liabilities. Conversely, you have a negative net worth if your liabilities are bigger than your assets.

Your net worth gives a picture of your current financial status. If you calculate your net worth right now, you'll see the end outcome of all you've made and spent up to this point. While this number is useful. For example, it might serve as a wake-up call if you've gotten entirely off track or a "great job" confirmation if you're doing well. Tracking your net worth over time provides a more relevant picture of your finances.

A trust is a fiduciary relationship in which a trustor entrusts property or assets to another party, known as the trustee, for the benefit of a third party. Trusts are created to offer legal protection for the assets of the trustor, to ensure that those assets are transferred according to the trustor's desires, and to save time, reduce paperwork, and, in some situations, to avoid or decrease inheritance or estate taxes. A trust can also be a type of closed-end fund formed as a public limited company in finance.