Everyone wants to be an investor nowadays, but not everyone can do it right. Too many people are under the false impression that you just put money in and BANG millions come back out. This train of thought is laughable. If investing was that easy…everyone in the world would be crazy wealthy right now. Investment is a game of strategy and beating the odds. Too many people lack the knowledge to reap the benefits of investing and thus they make stupid mistakes. There are rules to this game, so before you put a penny into investments, make sure you know how the game goes.
As someone who has over 20 years of skin in the game, I know the investment world inside and out. I can’t tell you how many times I have witnessed people make careless decisions about where to invest their money. It’s almost sickening. But enough is enough. I am here to share with you some of the tricks of the trade I have learned over the years. If you want to succeed as an investor, check out these 3 financial rules that you can never break:
NEVER borrow money to invest: Investments are never a sure thing. It can be easy to get caught up. Sure, some investments sound great on paper, but in all actuality you never know what’s really in store. Take COVID for example. The sudden hype around the pandemic has caused major disruption to a lot of businesses. Business ideas that were once a sure thing to invest in fell flat on their face. If you had borrowed money to invest in these businesses, long story short…you’d be screwed and drowning in debt. And let’s be clear, hope and apologies won’t cover your tab. People may be willing to lend you money, but they’ll be even more eager to get it back, no matter what the circumstances are.
NEVER chase the trends: If you find yourself chasing after new trends, that just means you’re 3 steps behind. Smart investors don’t follow the trends, they look towards the future. You have to be able to see beyond the here and now. The world of business is forever evolving and what’s “in” now may not be trendy years down the line when you’ll actually reap the benefits of your investment.
NEVER let your emotions play a role: The fact is investing is a cold blooded, unforgiving game. You have to approach each opportunity with fact and logic. If you get caught up in your emotions, you’re sure to lose money. Just because something is near and dear to your heart doesn’t mean it will be as gracious to your bank account. At the end of the day, you’re not investing as an act of kindness, you’re investing to make money. You have to be cut-throat in your decision making if you really want to see financial prosperity. Afterall, this is investing not a charity case.
Now is the best time to invest, but you must do so thoughtfully otherwise you’ll end up losing a ton of money. What investor wants to do that? However, if you avoid these 3 financially fatal mistakes, you’ll thrive as an investor. At the end of the day, no investment is a sure thing, but you gain an advantage by being smart about where you are investing. Investment is not for the faint of heart, weak minded or “get rich quick” type of person. You have to be cut-throat, knowledgeable and willing to put in the time to achieve the results you are looking for.