5 Guidelines For Better Investing
Looking for some guidance for better investing? Here are some great tips.
1. Be aware of where your money is located
I looked at a client’s portfolio recently. This client is also a friend of mine and saw that he was investing heavily in condoms.
When I asked him about it, he didn’t even know he had so much money invested in condoms.
Unfortunately, consumers don’t get much transparency with respect to their super and this is wrong. It is important that you’re always aware of where you have your money invested at all times.
My client who was unknowingly invested in condoms didn’t believe this was the best investment. However, I asked him to truly consider why he thought that. After all, it could be a fantastic investment.
If you don’t have a strategy, then you can easily get turned off from excellent types of investments.
It is important to have a good strategy as you shouldn’t get involved in anything without having a solid plan. Lots of people don’t even have a weekend that doesn’t have a plan, even it is simply to relax.
However, many people have no strategy when it comes to their super which is an extremely important amount of money.
There are lots of ways to develop a strategy such as being an insider so that you can learn on your own or even work with someone to help you create a strategy. Follow these steps to investing.
3. Simplicity is important.
When I was on Wall Street, there was a trader that I used to talk to that would back up his positions using equations, tons of data, graphs and more. This would signal to me that he was a BS vendor and everything he had to say was trash.
My general rule was that your strategy should be like a quick elevator pitch. Once the elevator ride is over, you should have been able to explain your strategy. Even if the speech takes 10 floors, it still counts and it should not be as long as if you were giving a speech on a podium.
When you have simple strategies, life will become a lot simpler.
Debt should be treated as though it is a hot potato. Basically, you should strive to get rid of debt asap.
4. Get started now
Once you have looked at any of my posts or chatted with me, then you’ll know my stance of starting as young as possible. The earlier that you take over your finances and control them, the more success you’ll achieve when investing for your children.
If it isn’t possible for you to start young, then you should start right now.
With that said, the benefits of starting young is that you can make use of compounding. This will have a huge effect on your entire portfolio.
When you have small amounts of money that is accumulated over a long period of time, this will have fantastic results. This is easiest done via automatic deposits. The majority of people don’t miss the money once it goes automatically to savings.
In order to get the longest period, you need to start doing this as young as you can. You should not wait until you have more money or a lot of money to start. You shouldn’t wait until you’ve lost weight and become fit in order to start going to the gym. The entire point of the gym is to become fit. So, this applies in the same manner.
Even by saving the smallest amount of cash on a regular basis, you will impact your future quite significantly.
5. Keep out of debt
Debt isn’t great for anyone. Once you have debt, you should try to get rid of it quickly in the same way that you would a hot potato.
There are lots of ads that make going into debt appear quite appealing. This includes things such as home loans, personal loans, car loans etc. In these ads, you are made to believe that debt is quite exciting. This is because it is actually exciting for the banks since they make a lot of money with these types of loans.
When it comes to investing, it won’t be stressful or complicated once you keep these tips in mind.