Looking to get rich next year? Unfortunately nobody becomes rich overnight.
Those “overnight successes” we see are normally the results of years and years of hard and deliberate work. The good news is that when it comes to building wealth there are no secrets.The same set of principles will work for absolutely everyone! If you’re willing to put in the work and make the sacrifices one fine day you can be sure of making your dream come true.
Would like to share few Tips or Suggestions to become rich not overnight but over years.
Start Investing Early
The sooner you start investing the better. By investing early, you allow your investments more time to grow. Money has time value. Money earns and grows with time. Money grows with the power of compounding. Don’t waste your time and start investing today. Remember, the best time to plant a tree was 20 years ago. The second-best time to plant a tree is today!
Invest For The Long Term
Investing is designed to be a long-term endeavor. If you want to trade, you hold for the short term. If you want to invest, you do it for the long term. Holding period for a stock may be forever. Warren Buffett is famous for saying, “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for 10 years.” By this, he’s saying that he wants to buy good, solid investments that will pay off over the long run. Ignore short-term fluctuations. Patience is the key to investments. When you invest in the stock market, think for long term and not quick gain through trading.
Diversify, But Not Too Much
It is essential that you diversify your portfolio – it’s one of the best ways to ensure that your portfolio grows on pace with the market over time. You should diversify in different assets classes. Diversify but don’t over diversify in same asset class, which usually cancels out all potential gains. Invest in different assets classes such as stocks, bonds, mutual funds, bank deposits, gold, real estate and other instruments. And, even within an asset class, say stocks, go for good quality companies. Philip Fisher says “I don’t want a lot of good investments; I want a few outstanding ones.”
Investing Is NOT Gambling
One of the biggest mistakes few make is thinking that all investing is gambling or speculation. Nope – it isn’t. Avoid making investment decision based on short-term market movements’ predictions, rumors, and gossip. You need to do your homework. You need to think about every investment you make as you personally investing as an owner of the company. Would you buy this company at this valuation? What can go wrong if i buy this stock? Think of it that way and invest, don’t gamble.
Don’t Borrow Money To Invest
If you want to invest in the stock market, you need to do it with your own money – don’t borrow money from others to do it. Or, don’t borrow money from yourself to do it either (like using a credit card). Don’t invest in market using borrowed money, especially if you are a new investor. Any adverse market fluctuations may force you to sell your position and you could owe a lot of money. Simply get started investing from your savings – that’s it!
Will share more tips in next series, so that you will have time to assimilate.
Happy Investing!
R♥Vi
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