?It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.? – Charlie Munger
Earning money from investments is considered to be a form of non-labor income. It has nothing to do with working hard or spending too much money in order to get returns. Once you develop certain investment strategies, all you need to do is follow through and keep a watchful eye on the returns you get.
Once you have invested for a sufficient number of years, you can take a careful look at the data to further develop a more efficient investment strategy that will allow you to make more money.
However, you must be careful not to give in to your temptations to change your investment strategy every time there?s a shift in the market. It might seem like a wise choice to be more aggressive or laid back to suit the way the market is moving, but you?ll only risk losing money if you switch methods over and over again.
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson
The secret of successful investment is consistency and mindfulness. If you stick to your investment strategies, you?re likelier to earn more from them over time if you don?t switch tactics every other year.
Before you make any major financial decision regarding investments, it?s wise to sit down and take a long, hard look at your own financial situation. Take note of your net income and your monthly expenditures to figure out how much risk you can weather before you put in any money towards investments.
Overestimating your risk tolerance can run you into debt, and become disastrous for your finances in the future. It?s always a good idea to turn to an investment expert for help to prevent any major disaster from ruining your savings.
?When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.? – Phil Town