Sunday 14 April 2024

Seven Investment Rules To Help Your Rule Money - Reno Omokri

The information below is the Seven Key Investment Rules To Help Your Rule Money.

The Rule Number One is to Get a mentor, or poverty will be your tormentor. Before you marry, it is wise to go for pre-marital counselling. And before you invest, it is prudent to have some pre-investment guidance. If not, you will be led by greed, and you will lose money. But remember, the broker the mentor, the freer their guidance. Look for someone who has verified success in the area you plan to access.

Two: You don't want to learn from your own investing mistakes. Because, that can be financially devastating. So, you want to learn from other people's mistakes. And to do that, you must read. Voraciously. If you have low capacity to read, you will have no capacity to win in investing. It is better to have knowledge you don't need than need knowledge you don't have. 

Three: Have a budget. Budgeting will let you know how much money you can invest. Your earned income minus your expenses is equal to your investable income. Don't worry about an emergency fund. That is old school. In the event of an emergency, you can liquidate some, most or all of your investments to meet that emergency. So stop saving for an emergency. Invest all your savings. To be on the safe side, have a variety of stocks. 

Four: Don't borrow to invest in the stock market. Always invest with your own money. The stock market is not like a business that you own and run. There is more control there. Even at that, you should only borrow to expand your own business. But for the stock market, do take out loans to invest. Investing in the stock market is good. But it is also risky. You borrow for certainty. You do not borrow for what is risky. 

Five: Always be on the lookout for how to cut your expenses. Because the more you cut your costs, the more you up your investment. Lose your taste for restaurant food and start cooking all your meals at home. If your friends call you stingy, those friends are risky. BOD them farewell. Look, taking a girl out to eat at restaurants is not romantic. It is erratic and problematic. Walk anywhere that is 3 miles or less. It is good exercise and is medicine to your body, and will help you cut down on future health costs. Avoid lounges and nightclubs. Those are not places for a fun hangout. You can't relax there when you see people spending anyhow. It puts pressure on you to match their spending. Do your own laundry or get a washing machine. Learn to cut your hair. The purpose is to save on your expenses and invest what you saved. 

Six: Follow business news. It could be CNNMoney, The Financial Times, Bloomberg, INC, Business Insider, The Economist, Forbes, The Harvard Business Review, etc. Investing is not as complicated as you think. A piece of verified good news about a publicly traded company almost always increases their stocks. And if the verified news is bad, their shares invariably go down. It will guide you as to when to buy and sell. But if your focus is Cardi B's big booty or Beyoncé's twerking, how will you be aware of such news?

Seven: Never invest when you are excited. Instead, look for someone to donate a dirty slap to your face to pull you back to reality, or take a cold shower. Your excitement will make you take the wrong investment decisions. And when your excitement goes, your money will likewise go. 

Follow these rules, and money will follow you. Money does not respect people. Wealth respects principles. If you follow the principles that lead to wealth, money will follow you all the way to your house. 

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