How to get rich.
What attracts money? The answer: other money.
It's the old paradox: you need money to make money. So, where do you get your initial money to start with? Well, anywhere. Leave your ego behind and do what you need to do to get some money, and experience working with money. If you invest wisely, you will find that the initial money is the hardest to earn. Over time, as you gain experience, you will find that new money is very easy to get. It will seemingly come to you without you even trying.
Ok, so how do you get to that level?
The most important thing is to Do Something! You’ve got to play to win. No one ever made any money reading investment manuals. You have to get out there and get some money of your own, and then start investing.
Smart investors know that investing takes place over time. Initial gains or losses are meaningless. They will each seem insignificant once you start to reap the big, long-term gains down the road. Do not be discouraged by initial losses, things will get better. Do not become fixated on a stock that is losing money. Cut your losses and move on.
Avoid high-risk investments. But don't be too conservative either. Moderate to aggressive growth stocks are your safest long-term bet. Never put all your eggs in one basket. You must have a diversified portfolio, which simply means owning several stocks at the same time. You never know when one might flake out.
Investing works best when you start young. Time is a critical element in making your investments work. You can take complete losses when you are in your teens or twenties and suffer little or no long-term damage. Starting later simply means that you have less time to make investments. Starting later usually means being more conservative with your investments; you will probably have other commitments by that time so the possibility of total loss may be, or at least seem, unacceptable.
If you have high-interest credit cards, or other financial liabilities, you must take care of those liabilities first. Pay them off, or do whatever you need to do to get back to square one. 15% or 20% interest on a credit card is a guaranteed loss. You must avoid guaranteed losses if you want a solid financial future.
Do not invest in cars. Cars always lose value. Extremely old cars can become "vintage", which gives them some value again. However, vintage cars need extreme restoration efforts to get them to look like new again. If they run, you can be sure that many of the critical parts have been replaced with new parts. Vintage cars may have value, but they will never run like new again.
Key points:
Have no ego.
Live below your means to start.
If you have liabilities, take care of them first, you must avoid guaranteed losses.
Invest in many stocks at once.
Be patient, early losses are only temporary.
The long-term gains are worth it.
Finally, do not fall in love with your investments. This is a mistake that can potentially ruin you. Investments must perform. If a stock has been good to you in the past, you can give it a little more leeway, hoping that things will turn around again. However, if there are consistent losses, you must dump the stock. Investing is about money, and the happiness and quality of life that money can bring. High quality stocks do not usually go south, but nothing is a guarantee.
For more information on investing strategies, please visit www.sosuave.com
What attracts money? The answer: other money.
It's the old paradox: you need money to make money. So, where do you get your initial money to start with? Well, anywhere. Leave your ego behind and do what you need to do to get some money, and experience working with money. If you invest wisely, you will find that the initial money is the hardest to earn. Over time, as you gain experience, you will find that new money is very easy to get. It will seemingly come to you without you even trying.
Ok, so how do you get to that level?
The most important thing is to Do Something! You’ve got to play to win. No one ever made any money reading investment manuals. You have to get out there and get some money of your own, and then start investing.
Smart investors know that investing takes place over time. Initial gains or losses are meaningless. They will each seem insignificant once you start to reap the big, long-term gains down the road. Do not be discouraged by initial losses, things will get better. Do not become fixated on a stock that is losing money. Cut your losses and move on.
Avoid high-risk investments. But don't be too conservative either. Moderate to aggressive growth stocks are your safest long-term bet. Never put all your eggs in one basket. You must have a diversified portfolio, which simply means owning several stocks at the same time. You never know when one might flake out.
Investing works best when you start young. Time is a critical element in making your investments work. You can take complete losses when you are in your teens or twenties and suffer little or no long-term damage. Starting later simply means that you have less time to make investments. Starting later usually means being more conservative with your investments; you will probably have other commitments by that time so the possibility of total loss may be, or at least seem, unacceptable.
If you have high-interest credit cards, or other financial liabilities, you must take care of those liabilities first. Pay them off, or do whatever you need to do to get back to square one. 15% or 20% interest on a credit card is a guaranteed loss. You must avoid guaranteed losses if you want a solid financial future.
Do not invest in cars. Cars always lose value. Extremely old cars can become "vintage", which gives them some value again. However, vintage cars need extreme restoration efforts to get them to look like new again. If they run, you can be sure that many of the critical parts have been replaced with new parts. Vintage cars may have value, but they will never run like new again.
Key points:
Have no ego.
Live below your means to start.
If you have liabilities, take care of them first, you must avoid guaranteed losses.
Invest in many stocks at once.
Be patient, early losses are only temporary.
The long-term gains are worth it.
Finally, do not fall in love with your investments. This is a mistake that can potentially ruin you. Investments must perform. If a stock has been good to you in the past, you can give it a little more leeway, hoping that things will turn around again. However, if there are consistent losses, you must dump the stock. Investing is about money, and the happiness and quality of life that money can bring. High quality stocks do not usually go south, but nothing is a guarantee.
For more information on investing strategies, please visit www.sosuave.com
