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How to Start Investing in Stocks: A Beginner’s Guide – ProsperUS

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First of all, I’m glad that you’ve decided to take this first step on investing your money. The journey of a thousand mile begins with a single step and this first step is one of the most reliable ways to create wealth over time. If you’re a first-time investor, you have come to the right place. Before you put your hard-earned money into investments, I want to walk you through some of the basics of how to invest your money. There’s no one-size-fits-all solution when it comes to investing but the best way to invest your money is one that fits your personality, based on: 1) your investment style 2) your budget and cash flow  as well as; 3) your expected return and risk appetite . 1) Investment Style There are typically two investment styles that one can take, as  1) active investor  or  2) passive investing . This is most likely driven by your personal lifestyle – whether you have the time and resources to spend on research. Typically, someone who has a busy work schedule would opt for p

Here’s Why “Return on Investment” Matters

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What Is Return on Investment (ROI)? Return on investment (ROI) is one of the most common financial metrics used to measure and evaluate the profitability of an investment. How to Calculate Return on Investment (ROI) To calculate return on investment, all you have to do is divide the net income of an investment with the cost of investment. The result is either expressed in a ratio or as a percentage. The higher the ratio for return on investment, the more efficient the investment. ROI = Net income/cost of investment Here are some of the benefits to using ROI as a metric to measure the efficiency of an investment made by a company. Simplicity The return on investment metric is frequently used mainly due to the ease of calculation. It is straightforward and simply calculated by taking into consideration two variables – the benefits/profits of an investment and the cost of investment. Versatility The return on investment is also versatile as it can be applied to different aspects. For exam