Always Protect The Downside - Darius Foroux
Invest in something that has an underlying value.
Limit your potential losses by diversifying. For instance, invest in an index fund, real estate, and business.
SIMILAR ARTICLES & IDEAS:
Banks don’t like to give away their money. That mindset is reflected in the interest rates of checking and savings accounts of 0,5% and 0.9% avg. annual interest respectively.
When you deposit your money in the bank, the bank turns around and invests that money at 7% a year or more. After they collect their profit, they give a tiny shaving of it to you.
A few examples of how we extrapolate our exceptions all the time:
The root of this problem is our quick judgment.
But that doesn’t mean we should follow through on every single thought that pops into our mind.
Every time you start thinking about future events or start making mental movies, keep count on a post-it note or a small piece of paper. Be aware of your thoughts. But don’t follow through.
“Money isn’t making that much difference in how you and I live. We’re both going down to the cafeteria for lunch and working every day and having a good time. So don’t worry about money, because it won’t make much difference in how you live.”