23/04/2023
Investing is your path to wealth, but don't start investing until you understand these 4 concepts:
1. Investing is risky
- you're not guaranteed a return
- you could lose money
But you will make money if:
1. You're patient
2. You dollar cost average
3. You research stocks & funds
2. You must invest to get wealthy
- you can't get wealthy by your own labor
Putting your money under a mattress or in a savings account with little return is a guaranteed way to lose value.
Inflation depreciates your money.
3. Investing is a long-term game
Anyone who tells you they can double or triple your money in a month or a year is lying.
Get-rich-quick schemes are tempting, but you always lose.
You can turn $100 a month into a million, but you must be patient.
4. Remove your emotions from investing
Mixing emotions and investing never ends well.
- You buy too high
- You get attached
- You sell too low
- You let fear take over
Understand your risk tolerance and decide how you will invest based on your personal risk tolerance.