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.
Learn From Each Mistake
Nobody gets Investing right 100% of the time! As a new investor, you may make some mistakes. Do not get discouraged. Even great investors make wrong decisions sometimes! Analyse what went wrong and learn how to avoid them in future. The best model for success is to learn from your failures. Make sure that you record your mistakes and go through it often.
Buy Blue Chip Stocks
Blue chips companies are fundamentally strong companies with a track record of performance, earnings and reputation. Typically, these are large companies that have been in business for many years and are considered to be very stable. These are well known shares generally included in market index such as SENSEX or NIFTY. Investment in Blue Chip Shares is considered relatively secure, less volatile and gives steady returns over long run. Once you understand how stocks behaves with the news flow you might consider adding Midcap or Small cap stocks to your portfolio. But your core portfolio should have Large cap Stocks.
Set Investing Rules For Yourself
It can be easy to invest on impulse, especially for new investors. That’s why you need to frame your buy and sell rules before you buy. Don’t make impulsive decisions. Control your emotional behavior in the market. Benjamin Graham, the investment guru, tells “Adopt simple rules and stick to them.” When you stick to your own rules you’ll me far more likely to see a positive outcome.
Use The Rule Of 72
You’ve probably wondered “How long will it take to double my investment at a given rate of return?” The Thumb rule of 72 comes in handy here. Just divide 72 by the interest rate and you have the number of years it takes to double your money, roughly. For example, if the interest rate is 6%, your money doubles in about 12 years (72/6 = 12). The rule of 72 can help you weigh your investment options.
Cheap Stocks Are Not Really Cheap
It is advisable to buy a stock because it is available at a cheap price. The cheap stocks may be really worth even less. Remember a company which is doing badly may perform even worse in future. You need to think long term when investing so be sure to do plenty of research before buying stocks. Risk your money only if you can afford to lose it.
Happy Investing!
R♥Vi
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