We have been raised to believe in the importance of saving. Most parents teach their children to always take ten percent of their monthly salary and put it safely in a bank account in case of a rainy day and now this habit has become second nature to most of us. But in a world where the economy can tumble and waddle this sort of safety net that we have been knitting for so long may not be enough. Shall we make it stronger?
We already have out jobs and incomes so now we are looking for a way to increase our acquisitive capacity. The word investment shows up and somehow this scares us; we tend to associate this word with big companies and powerful people with more money than we can ever hope to have. But what we do not know is that anyone can be an investor.
There are many ways to become a successful investor. Contrary to popular belief, you do not need to have an enormous amount of money in order to make a good investment and reap what you sow. You have all you need with your current income.
“You do not need to have an enormous amount of money in order to make a good investment and reap what you sow”
Here are ten tips that will surely help you become the great investor you always dreamed to be.
1. Use only the excess. We are all human, we all have needs that we need to cover such as food, clothes, rent, etc. You do not want to go and use all of your money to make an investment no matter how great it looks. Use only whatever amount of money you have left after covering all of your basic needs.
2. Do not bet all your chips in a single game. The world of investments and finances is extremely dynamic and volatile, so you do not want to put all of your money on a single investment and see it crash and burn taking down everything you bet on it. The wise thing to do is to divide your money and make small separate investments thus reducing the probability of wasting your precious money.
3. Think long term! Cases of people hitting the jackpot and becoming millionaires overnight are few and rare. Investments are all about patience, make long term plans and set annual goals. You will not see the results of an investments as soon as we would all like but they will definitely show in the long run.
4. Know the risks you are facing. The sad fact is that there is no way of making an investment that is a hundred percent fail proof. The best thing you can do about this is to know and understand all the risks that you may be taking when you make an investmen pt. How you face this risks is what will define you as an investor, you need to be brave and bold enough to take that leap of faith but at the same time you will need good judgment to know when to back down. In a way is knowing to pick your fights.
5. Invest your time. There is no such thing as a magical money-making machine, no miraculous formula that will allow you to multiply your money with no effort. Think of an investment as a seed that grows into a tree, it needs time and sometimes the hand of a skillful gardener to help it and set it straight if it ever starts to bend or fall over. You will always need to watch over whatever investment you make. Daily events have a profound effect on the world of finances so you need to keep an eye on them and protect them from any harm that may come to them.
6. Trust the reputations of others. You are not alone in the vast ocean of the world of investments, there are plenty of fish out there and while some may be out to get you there are more that can offer you help and protection. There are many companies and people that will be happy to help you out, and they all have a name to keep. Trust the ones with good references and a positive history of past clients.
7. Be ready to compromise. When you make an investment you are surely entitled to a series of benefits and rights as a buyer but there are two sides to this coin; with every benefit and right comes a duty as an investment. You are dealing with money and every transaction you make comes with a contract that legally binds both buyer and seller to a list of rights and duties. There is no escape from this, so be ready!
8. Know everything’s price. Commissions, taxes, deductions, and many other of these words have an impact on the amount of money coming in and going out. A good player always knows the rules of the game by heart. Do the same and learn all the cost of everything that may affect your investments.
9. Seek advice. Just like you are doing right now, no one became an expert overnight and every investor started out from the same place that you are now. Get help from someone trustworthy and professional, someone who can lend a hand and guide you when you need it. There are many financial companies that do exactly this, they offer help for rookie investors and they will be more than happy to help you out.
10. Make a plan and stick to it. What good is a game plan if you are not going to follow it? The same is true with investments. There are plenty of business strategies you can choose from when entering the world of finances, just pick the one you feel most comfortable with and stick to it. Persistence is another keyword to keep in mind when making long term investments, if you change your strategy in the middle of the game you are risking messing everything up.
One thing to remember is that as important as investing is, your health comes first. Healthy body healdy mind!
There is more to investments than just ten tips but it is a good place to start. With some luck they may just set you in the right path to becoming a proper investor. So go ahead and stop spending and start producing!