This article discusses about money management.
We don’t always do what we are supposed to do with money. We all make decisions based on our own unique experiences that seem to make sense to us in a given moment. Keep this in mind, before judging people and yourself, not all the success earned by hard work and not all poverty created by laziness.
Many people are foolish by taking risks for something important to them for something unimportant; it doesn’t make any sense.
“Every financial decision should be driven by what you value” – David Back.
What is good investing?
It is not about earning the highest income because the high profitability gets once a lifetime that can’t repeat. It’s about making pretty good returns that can replicate for an extended period.
The secret of success is to invest consistently. Invest your assets years and years in growth. One year of growth will never show much progress. Ten years can make a meaningful difference, and fifty years can create an extraordinary difference. Check this article to know more ideas about investment 6 Simple ways to invest money.
An attitude of successful people:
Successful people do not stick to one strategy. They won’t quit or rely on others’ money. It gives them longevity which means investing consistently throughout their lives. They won’t be hurry to become incredibly wealthy. They develop a skill of staying wealthy which is the skill that matters most. Successful people invest their money in large public companies to keep their money safe, predictable, and more stable returns.
Three strategies to invest money are,
- Invest a small amount of saving every month consistently.
- Sell everything in a recession and invest everything back into the stock market when the recession ends.
- Invest $1 in stock when there is no recession. Sell money six months after a recession begins. Invest back in 6 months after a recession ends.
Successful people follow only the first strategy. They keep investing because the first strategy ends with almost three-quarters more money than the other two strategies.
Successful people’s gain came from a small percent of their actions. They may have been more right, but they could have been wrong just often as you. The key is they are the learners, learning from their mistakes. It’s not whether you are right or wrong, but how much money you can make when you make the right decisions and how much money you lose when you are wrong. You can be wrong and still make a fortune.
What makes you happy?
People believe wealthy life make them happier. Research says, control over doing what you want, when you want to, with the people you want to, is the lifestyle that makes you happy. Controlling your time helps to make your life productive and wealthy.
“No one is impressed with your possessions as much as you are.”
Most people think luxurious possessions( car, house, etc.) send a strong signal to others that you are rich. People tend to want wealth is to signal others that they should be liked and admired. These are imaginary.
The real thing you need is respect and inspiration from other people. Check this article to know more about successful people attitudes5 Habits Of Super Learners. Expensive stuff never brings them. It rarely does. People may love your possessions and imagine themselves in your place, but they don’t care about you.
If respect and admiration are your goals, be careful how you seek them. Humility, kindness, and empathy will bring you more respect. The real happiness lies in these things.
Investor Bill Mann says, “The way to be rich is to spend money you have and not spend money you don’t have.”
How to save money?
Savings can be created by spending less. If you desire less, then your expenditure will be less. Your desire will be less if you care less about what others think of you. Saving doesn’t require a reason to save. You can save just for saving’s sake.
Warren Buffett became so successful because he kept doing the same thing. (investing money) for decades. Check this article to know more about saving.
Ideas to keep in mind to take a long-term decision:
- Maintaining a stock for the long-term is very hard. We need to overcome fear, doubt, regrets, and uncertainty. These are the price to learn financial intelligence. They are often worth paying. You see them as fees, not as fines. Many people are willing to pay for luxurious things instead of paying the price of good investment returns. The cost of investing in success is not an immediate thing. It would help if you had a mindset to stick around long enough for investment gains to work in your favor.
“Find the price which is worthy for you, then pay it.”
- Growth can happen by compounding, which always takes time.
- Avoiding monthly pay is better than maximizing the long-term value of our assets. It will make you feel independent.
- We will achieve our financial goal if we consistently invest money into a low-cost index fund for the long-term, leaving the money to compound.
- The best money investing strategy relies on a high saving rate, patience, and optimism.
The above mentioned ideas will help you and guide your families to grow wealthier, no matter what happens in a world of increasing change and uncertainty.
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