Ready to test the water of investing?
Yes! I hear you say. Probably you have google around and find a lot of complex theories about investing. Well, investing can be complicated at times but it doesn't necessary have to be.
Today, I will be giving you simple approach to investing. In fact just like the title suggest; a layman can invest with this guidelines.
Here Is The Guide To Investing
well, I believe you are a money saver, because it is one of the reasons you are reading this right now. As a saver, your money grows and matures to a point, it gets to a ripe age to bear children or yield interest. you want to expose is to conditions necessary for greater yields.
you want it to have children and grandchildren and so on. you certainly don't want to start eating it children by spending the interests.
you start investing. you will need to invest wisely. The first law of investment is
Let me ask you.
What is the best business to invest your money into?
The best business to invest your money in is the business that begets it, where you have the most skill.
You invest in areas you are sure about. Never invest in in business you know nothing about.
Warren Buffett has this for you, “the market, like the Lord, helps those who help themselves. But unlike the Lord, the market does not forgive those who know not what they do. Investment must be rational. If you don’t understand it, don’t do it.”
2. Buy And Hold
Well-known billionaire and philanthropist Warren Buffett has popularized the “buy-and-hold” strategy that so many emulate. Followers of this strategy believe so strongly in investing that they do it as a matter of course. They do it for the long term, holding onto their investments for years.
“If they buy good companies, buy them over time, they're going to do fine 10, 20, 30 years from now,” Buffett once told CNBC.
3. Let Banks Do Their Job
It is important to know that a lot of people including family and friend will come to you for a loan. Never loan out your money to other with any sort of promise to repay.
A Portuguese proverb says: “if you would make an enemy, lend a man money and ask it of him again.” If someone asks for a loan, say “Sorry, I don’t have that much, but I have this much, I give you totally.”
You will almost always lose a friend by lending him money just as readily as you can nature the relationship by giving him the same amount. Try it, if you have a boring friend and you want to dispense off him, simply loan him a sizable sum of money and in all likeliness, he will start avoiding you.
Why do the same to people you treasure? It is always better to give than to lend and it costs almost the same amount.
Granting loans means you are delving into banking practice, the rule of which you don’t know.
Don’t start a bank unconsciously. If you must, wait until it is fully registered.
4. Avoid Get Rich Quick Schemes.
Many wanna be investors made two common mistakes.
The first is that they are always looking for a hot tip to invest in. Don’t be one of them. Believe me, 80% of the people who invest in the so call Hot Tips make no money from such investment.
The never do their due diligently. They want quick money. They simply take tips from someone who does not know what he or she is doing and called it Hot Tip I love the way Warren Buffett put it forward. “Wall street is the only place where people will drive Limousine to get advice from the people that use the subways.”
Get your advice from a credible source. Even if it is costlier, believe me it worth the price.
The second most common mistake is money doubling schemes.
A safe, credible and small return is far more desirable than a fat risky venture. Be more interested in the security of your principal than in the size of the yield. Avoid the get rich-quick scheme like the plague. Distance yourself from the idea of lotteries, casino gains, betting and all sensational opportunities.
Leonardo Da Vinci said: “He who wishes to be rich in a day, will be hanged in a year.”
The best way to get rich is to get rich slowly.
5. Seek Help
Seek advice of wise men before jumping into doubtful opportunities. A Danish proverb says: “Better to ask twice than to lose your way once.” Take only calculated risks.
Don’t gamble, head or tail with you money. If you are not sure back out.
Wrap It Up!
As I noted in the opening paragraph of this article, to many people investing is complicated and risky. Financial advisers and investment coaches are not making things easier as well. The information you get online about investing can be overwhelming most time.
I want you to take a simple approach as laid down above and see how far you can go with your investment plan. Don't jump to opportunities that looks too good to be true and test the waters with caution.
Over To You
So, what are the other advises, tips, strategies, techniques or methods that have worked for you? Please share with us in the comment below. Believe me; I sincerely value your opinion more than mine.
And don’t forget there is love in sharing!