How to Invest: No One Cares About Your Money More Than You!
Learn How to Invest Your Own Money: Your Fifth Step Toward Financial Freedom
How to invest...
Lets face it, no one cares about your money more than you do! So it's really important that you know how to invest your own money. Unfortunately, most of us were never taught about investing.
How The Rich Live
For years I used to wonder how people could afford those very expensive homes, or how they could afford to travel the world first class, when most of the people I knew struggled from day to day just to pay their bills.
Then a friend gave me a book entitled "Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and the Middle Class Do Not!", by Robert Kiyosaki. It changed my life.
I highly recommend you read this book and play the board game "CashFlow". It reinforces the financial principles you learn in the book.
How The Rich Make Money
In Rich Dad Poor Dad, Robert Kiyosaki explains in simple terms how rich people
use money to make money. They use the profits from their investments (i.e.
passive income) to buy what they want, instead of buying their toys with income from their jobs.
You can only work so many hours and only earn so much. But money can earn interest non-stop; even while you're sleeping. Money can make money much faster and easier than you can. So it's very important to
learn how to put money to work for you!.
1. Only invest what you can afford to lose. This is why it's so important to first
save money for emergencies and then save money for reserves (3 to six months of living expenses). Then and only then should you even consider investing.
2. Start investing with small amounts first and take limited risks. Start small and grow your investment egg. As you become more experienced, you can take more risks.
3. Learn as you go. The best way to learn is to get started and follow your investments. By having money at risk, you'll be more focused in following your investments and seek out information to make more informed investment decisions.
4. Stick to things you enjoy and know something about. By investing in areas and things that you enjoy and know something about, you'll stay motivated and have more insight when making investment decisions.
Before getting started consider the types of investments listed below.
Investing Small Amounts
Investing in Stocks
Investing in Bonds
Investing in Mutual Funds
Investing in Real Estate
Investing in Commodities
Investing in Futures
Investing in Options
No one can promise you will be successful in investing, but I really believe you will have a better chance for investing successfully if you start small, learn as you go, and stick to things you enjoy and know something about.
After all, everyone knows something about something!
Other investment information:
Click here for information about money investing for beginners.
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