Invest money 2102 starts with the economic definition as the “risk capital” or money spent with the expectation of generating good results. However it is not unusual to associate investing with negativity or a loss.
This contrasts sharply when one reads investing books from guru like Robert Kiyosaki. As this article is about investing our resources be it money, time or energy, it brings to mind, Robert’s definition of “assets” versus “doodads”. He defined “assets” equal investments that bring in positive benefits in terms of time and money. Here he focuses and expands his philosophy by harping on his basic 7 rules of investing money for beginners that will provide shelter for weathering the negativity that surrounds our financial lives.
Why do most people fail to invest money, time or resources to improve their lives?
Impatience as characterized by Maggie instant noodles which is the hallmark of today’s hectic lifestyle as an expected response to having to wait for something to happen. Think about this scenario:
You bought a how-to-invest-money book on “Trading to Win“with the hope to become master stock investment like George Soros. However as you reviewed your own stock performance, it is flat for a month, what do you do?
The impatient investor puts aside the book and looks for the next best-seller. As compared to the smart financial one who absorbs the mindset, methodology and money management techniques, tries it out and weed out the non-performing stocks and wait for the next cycle or opportunity to reinvest or to sell again.
Reminder: Let your investment show the profits and losses. Don’t presuppose. Don’t force the market to do your supposition.
2. Poor Asset Building
Asset building, knowing what is consumption and what is an asset is the distinction that separates the winner from the rest of the crowd. Spending money on appreciating assets is the most important investment decision you’ll make. If your so-called “assets” which take most of your time and focus consist of cars, tablets, fashionable clothes, smart phones then you are in trouble!
Note: Understand your assets like dividend yield, how long it takes to double and build a low-risk portfolio like mutual funds.
3. Believing the Market Noise
The investment world is not all what it appears. It’s filled with sales pitches, scams and may not have your interest at heart. It is all about filling up the commission coffers for brokers thru fees and tricks.
If you don’t believe, look at the bottom of oceans; filled with sunken ships, captains and pilots who were trained to sail yet wallow down under despite having the best charts, ships and professional guidance.
Don’t take for granted all that you hear or read from the market players.
4. Lack of Continuous Learning
Investing is all about learning what works and being in constant focus on learning as much as possible in order to fine-tune strategies and improve the odds and yields of our investment.
5. Poor attitudes – Procrastination
There’s always a better tomorrow but it is for somebody who has done his homework and kept on improving himself and then his investment.
6. Poor Self confident – Fear of Risk
Winners don’t let mistakes or fear stop them. They accept defeat as part of the process of learning and build upon that to experience victory and never give up.
Some videos here might help
How to invest money
Financial Planning for Beginners
We all want to invest money in order to succeed but we don’t want to go thru the pains, failures and wasted time. We rather wait for the ship to come, even though we did not send out any.
We will wait and blame the world if we don’t get our way. All successful winners go thru some frustrating disappointments but learn from such mistakes and eventually build a success story.