This week welcome a guest post from Emily Moore; 10 Simple Rules for Successful Investing. Lets read and Enjoy!
Description: Those who are thinking that successful investing is only for people who are in surplus couldn’t be more wrong. Everyone, who feels that ‘average income’ is more than they can achieve, can and should do it. Learn how you start!
Today, we have plenty of information about investing money. Why? Because it works. We’ve collected the essential info about investing money – all in one place – and presented it in a simple yet effective guide.
1. Get Motivated by Prominent Role Models
Looking at the most successful people of today, we often catch ourselves wishing to become rich. But can it be good for us? Yes, if we avoid envying and comparing ourselves to them. Learn from them instead, and get inspired! For example, they take risky steps, even make mistakes, and keep going. People like Elon Musk, Max Polyakov, and Richard Branson choose the most uncertain but truly fascinating field to invest in – space exploration and tourism. We would never have heard of any SpaceX or firefly’s investor if they preferred to stay on the safe side.
Also: check out the MoneyByRamey recommended financial reads.
2. Change Your Attitude
The drastic mistake concerning successfully investing money is that people never actually start to do it. They postpone it, making a bunch of new excuses each day: I don’t earn much. Or I don’t need this, because I have enough to pay my bills. Or how to start investing money if you don’t have enough savings in the first place?
When you get rid of these stereotypic attitudes described below, you’ll see that investing with little money is the only way to become independent, not only provide for yourself and your family.
Developing an attitude of gratitude can also help improve your financial picture greatly.
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3. Know Your Enemy
All the following misconceptions must be busted, as they don’t allow one to become wealthier:
● It’s only possible to invest when one has enough left at the end of the month.
● There’s no need for a plan. When I get the interest, I’ll know how to spend it.
● Doing your job and getting paid for it is pretty much everything you can do to make money.
● I don’t have time to learn about investing money (monitoring the market, investigating the newest strategies, etc.) I have a job, you know.
● I’ll have enough time to invest. Later.
● Investing money is a great risk that only wealthy people can afford to take.
Remember, you don’t have to believe the misconceptions above. So, let’s bust them today!
4. Don’t Start Investing Without Gaining Your Why-Power
Money for the sake of money is a very bad motivating factor. So, before you start investing to make more of it, set your goals, make a plan, and get ready to stick to it.
It is very important to know your whys when starting out on any journey.
5. Never Rely on Your Salary ‘Leftovers’
All people pay their bills. They have to buy groceries and clothes. More than that, they want to travel or treat themselves several times a year. It’s ok. What’s not ok is to think that you can do all this and you’ll have any money to save AFTER. Let alone investing money!
That is why the concept of paying yourself first is the only efficient way to deal with your finances. At the beginning of each month, allocate a fixed ‘fee’ for your savings and investments.
6. Getting Educated about Successful Investing Is a Must
There are consultants, speakers, coaches rambling on about successful investing and money management all the time. Bloggers touch upon this topic regularly, even those who usually talk about beauty, fashion, or cooking.
Amongst the favorite topics: ‘How to make/save/invest more’ tutorials are among the most popular, both offline and online. There is a multitude of books on investing money written by authors literally from every country in the world in all languages. Tips on investing money for beginners and experienced investors are very accessible, so collect as much information as you need to succeed.
Seek out information today and improve your knowledge! Recommended: Simple Investing by Matt Ramey
Simple Investing Now Available!
Want to learn the dividend investing strategy? Learn the ins and outs of how to invest in dividends to grow your passive income!
7. Eliminate a Know-It-All Perfectionism
The previous tip is very valuable until you make the researching process your primary goal. It’s not impossible to know all about investing money and successful investing, but most of your knowledge should come from practice, not reading about it or watching educational videos.
8. Time-Batch Your Finance Management Activities
Whatever job we have, we often feel too busy. Too busy to eat, or workout, or spend time with our families. When on earth can we get time to research and make reasonable decisions about investing money?
Well, a huge step to success is to stop procrastinating, batch everything’ financial’ in one block, put it on your schedule, and when the time is right – just do it! When it’s done, you’ll see that there is nothing scary in it. Employing banking and money investing apps to make it even easier. It can happen once or twice a month – whenever you feel it convenient.
9. Start as Early as Possible
The earlier you start saving and investing money for retirement, the more compound interest you’ll get. This rule is well-known by everyone, even those who are not very finance-savvy. However, it’s vital to perceive it the right way. Starting at 25 is perfect. If you are of that age, just start. But if you are, say, ten years older, still start! Many think that the time is wasted, and there is no point in investing anymore. Compound interest will work for you anyway.
10. Stop Looking for 100% Risk-Free Options
They just don’t exist. While investing in money, we will always face risks. Even some conventional ways are rather risky, so you just have to pick one that is safer in your situation. For example, a saving account is really safe in the short-term perspective, while it is not protected from inflation long term. Investing in stocks with little money may seem risky short-term. But, long-term, it is more profitable than saving accounts because the interest is much higher.
Note: Be sure seek out the advice of any competent investment professional before embarking on your journey!
Conclusion: If any risks become a real problem, you’ll need a safety bag. This will be your emergency fund – an account that you DON’T HAVE THE RIGHT to touch without a real emergency, like losing your job. Allocating money for paying your bills and investing money in bank accounts, make sure you save some for at least three months of living without getting paid.
Starting to learn how to invest wisely is easier than you may suppose. Just follow our simple investing money tips and begin your path of wealth building.
Author’s Bio: Emily Moore is a successful coach who has dedicated her work to well-being, habit building, and time-management. She has dozens of individual coachees and an enormous audience. Right now, Emily is in the process of completing her first book on how to become more successful without sacrificing your personal life.
Disclosure: I am/We are long $AAPL $ADM $ALL $BG $BGS $BP $BUD $CALM $CAT $CAG $CL $CLX $CMI $COF $CSCO $DAL $DFS $F $FAST $GD $GE $GIS $GT $HBI $IBM $INGR $INTC $IRM $JNJ $JPM $KHC $KMB $KO $KSS $LHX $LUMN $MMM $MSFT $NWL $O $PEP $PFE $PG $SBUX $SJM $SPTN $STX $SYY $T $TSN $UL $UPS $WFC $WPC $WRK $WY $XOM
Disclaimer:(1) All the information above is not a recommendation for or against any investment vehicle or money management strategy. It should not be construed as advice and each individual that invests needs to take up any decision with the utmost care and diligence. Please seek the advice of a competent business professional before making any financial decision.
(2) This website may contain affiliate links. My goal is to continue to provide you free content and to do so, I may market affiliates from time-to-time. I would appreciate you supporting the sponsors of MoneyByRamey.com as they keep me in business!