FOLLOW Shady investment advice Bad investing advice can come from many quarters, such as wealth expos or financial advisors. If anyone promises you any type of return over 12%, 99% of the time, they are probably playing you.
There are great financial advisors out there, but many people who sell investment products just want your money. However, it's not that hard to invest for yourself.
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FOLLOW Investing for Beginners
It's never too early or late to start investing! Learn how to invest in stocks, bonds, mutual funds, index funds, real estate, and more. And find out how to analyze companies and stocks to see which are worth your investment dollars.
Investing defined Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.
Most of the time, this is best achieved th...
Productive assets explained Productive assets are investments that internally throw off surplus money from some sort of activity. Each type of productive asset has its own pros and cons, unique quirks, legal traditions, tax rules, and other relevant details. The three most common kinds of investments from productive assets are stocks, bonds, and real estate. Investing in Stocks It means investing in common stock, which is another way to describe business ownership or business equity. When you own equity (the value of the shares issued by a company) in a business, you are entitled to a share of the profit or losses generated by that company's operating activity. Equities are the most rewarding asset class for investors seeking to build wealth over time without using large amounts of leverage. FOLLOW Investing for Beginners: The Complete Investing 101 Guide for 2019
You need to invest your money. It simply doesn't make sense not to. Even if you only invest 5% of your money, it would still be worth it. This is your investing for beginners 101 guide, updated for 2019. We explain the basics of simple investing and aim to inspire the proper mindset you need to succeed.
Investing ... is the trading of your money today for a lot more money in the future. It is a high yield over the long term. What happens to your money 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.
Portfolio and Diversification Your portfolio reflects your long-term wealth building investment strategy – not the short term. It includes everything you own. Your retirement accounts, your investment accounts, even your home are types of investments. Diversification is a way to describe owning multiple types of investment assets. Diversification is smart because you both protect yourself from failure and position yourself to take advantage of multiple robust methods for building wealth. FOLLOW A Definition of Personal Finance Personal finance is about managing your own money - how much you spend, save, get into debt, and invest.
How you manage your money will depend on your age, education, ambit...
Best Personal Finance Books The Richest Man in Babylon, by George S. Clason. The message of this 1926 book is that rich people are rich because they save their money and don't get into debt. Your Money or Your Life, by Vicki Robin and Joe Dominguez. This book will change your relationship with money. The Little Book of Common Sense Investing, by Jack Bogle. This book is about index funds. Jack Bogle founded Vanguard and created index funds. The 4 Phases Of Personal Finance
Consider where you find yourself as each phase requires a different strategy.
From nothing to something. This is where you live from paycheck to paycheck without any savings. Try to build a financial buffer of at least one month of expenses. Gaining traction. Once you've saved at least one month of expenses, aim for saving six months of expenses. Peace of mind. Put your money in a savings account and don't touch it. Everything else you save from now on is meant for investing. Financial freedom. This is the stage where you have enough cash and investments to cover your cost of living. Deepstash is better on the app. Discover new ideas and get inspired daily. GET THE APP SIGN IN