9 Best Investment Advice I Received So Far
A short post related to the best investment advice I get from different sources. Some of these advice are effective and worth following. Some are basic wherein we should take into consideration to become a successful investors. Honestly, I am not expert in investing. I just want to share these sort of advice especially to those newbie investors who are curious on how to get rich through investing money.
There are investing advice for beginners that can be found in InvestmentTotal.com. I am, proud to say that I almost tackle every thing (topics) that should be consider when it comes to investing. I said “almost”.
1. Never Lose Money
The best investment advice I received so far is “never lose money”. Wherein, Warren Buffett popularized that advice. He said “Rule number 1: Never Lose Money, Rule Number 2: Never Forget Rule Number 1”. A plain and simple investment advice. Why do you invest money if your goal is to lose money?
2. Play the Money Game to Win
Aside from Warren Buffett, I also want to mentioned the investing tips from T. Harv Eker, the author of Secrets of the Millionaire Mind; he said “rich people play the money game to win, poor people play the money game to not lose”. Did you see the difference how a poor investor and rich investor invest their money?
Image Credit: ohad* on Creative Commons 2.0 via Flickr — Free Advice3. Protect Your Income Through Insurance
Also, I remember when I read some personal finance books and investing books, most authors and experts says “you should not forget to buy health and life insurance” for it is the protection of your family’s income. After I read that statement, I immediately bough a life insurance.
You should have a health insurance and life insurance. If you just compute the total cost of an insurance per day, it will only cost you a less than a dollar.
4. Distribute Your Assets Properly
Another investment advice I want to emphasize is the importance of asset allocation. In this blog I already mentioned asset allocation. Asset allocation is the process of how should you distribute your assets or investments according to your age and risk tolerance.
Asset allocation can help you maximize the growth of your income and minimize the losses of your total investment capital. So, you need to allocate your assets before the year ends.
5. High Risks High Rewards
I prefer to invest in high risk types of investments because I want to accumulate faster. I want a high return on investments. Since I am still young, I prefer to invest in stocks. Maybe this procedures is also related to “asset allocation”.
So, if you want high ROI, invest in high risks types of investments. Don’t just invest in high risk types of investments, know the risks and learn to manage it.
6. Time and Compound Interest are My Financial Allies
I know you are familiar with compound interest. When I was new to investing, I thought a $50 can never make anyone a millionaire. I am investing as low as $50 every month. Since I know my retirement target earning asset, for me $50 per month is enough to acquire my target earning assets.
I don’t want to waste my time. Time and money are very important. I have learned that money can give you time freedom. So you better use time to acquired a lot of money. And the money you acquired will reward you later. The reward is time freedom. You better use time and money wisely.
7. Ask Advice to the Right People
When I wrote the topic how to build wealth yesterday, I stressed out that if you want to become wealthy, know what what wealthy people are doing. I also said that if you want to climb Mount Everest, you should ask someone who already climbed it.
If you want to become a successful investor, you need to ask a successful investors not those who are only making money by earning commissions by offering financial investments.
8. Free Advice will Cost You More
Free advice will cost you more. Why should you rely on free advice. I know the best things in this world are free. But, when it comes to your personal finances and investment funds, why not take a reliable advice. Say for example, your retirement years came. You retired broke and you didn’t plan carefully your retirement funds, can you blame someone that can give you a free advice? Of course not! I know you got my point here.
If you have free time, talk to a certified financial planner or to a registered investment advisors. Yes, they may charge you some amount, but it’s worth it. It’s worth it because they are expert in investment field and financial management.
9. Invest in Education
Actually this should be the first thing to do every year. Rich and successful people continue learning and growing by investing in education. There are many ways to invest in education. By simply buying personal finance books or investing books, by simply attending investing seminars or by hiring a financial expert to have a one on one coaching, you are investing in education.
The more you know, the more you can become successful in investing. So, start equipping yourself an important skills and knowledge.
I have many investment advice I read this year. Don’t forget to build your emergency funds. Invest money by using other people’s money. That process is called leveraging. I hope you liked this list of the best investment advice I received from different sources. What about you? What is the best investment advice you heard or read so far? Leave a comment below. Share this with your friends!