7 Dos And Donts Of Building Wealth
Dont fall behind
Finance charges, interest payments, getting discouraged about your finances all problems that can occur if you let yourself fall behind. Whether its bills, credit cards, or student loan payments, falling behind can be a very difficult problem to come back from. The more you have to pay out in charges, the less you will have to invest in your future.
Set goals
If you dont know where you are headed, how do you get there? In order to accumulate weal...
money,investing,finance,stocks,wealth,rich,article,business
Dont fall behind
Finance charges, interest payments, getting discouraged about your finances all problems that can occur if you let yourself fall behind. Whether its bills, credit cards, or student loan payments, falling behind can be a very difficult problem to come back from. The more you have to pay out in charges, the less you will have to invest in your future.
Set goals
If you dont know where you are headed, how do you get there? In order to accumulate wealth you need a plan. Write out your goals, a way to achieve them, and youll be on your way to an early retirement.
Invest early
The greatest thing you can do to build wealth is start early. Even if you cant invest much, start with what you can and let your money grow over time. As Albert Einstein said, compound interest is the greatest mathematical discovery of all time.
Invest in what you know
Whether you are looking to invest in real estate, stocks, or anything else, make sure you know how the investment works. The great Warren Buffett was often criticized for not investing in technology during the dot-com boom. His answer was simple. If you dont know the business model, what the company does on a day to day basis, or how it generates revenue now, and in the future, then stay away from it. This principle can be applied to all types of investing.
Dont do what the crowd is doing
When everyone is starting to get into an investment, that is generally when the smart investors are getting out. If everybody knows a stock is hot, or that their real estate market is booming, it generally indicates a bubble and that its time to cash out. Investors make money buying low and selling high. If an investment is hot and lots of money is flowing into it, you cant buy low.
Dont try get rich quick schemes
Dont get greedy. This is easier said then done, but dont try to gain too much too fast. Building wealth takes time and hard work there is no easy way to get rich.
Save more
This is another one that sounds pretty basic, but can be difficult to achieve. Often times people want the instant gratification and go out and treat themselves. If you have some money burning a hole in your pocket at the end of the month, save it. Think about how nice it will be when that money is working for you rather than heading out shopping.
Recommended For You
No comments:
Post a Comment