The Best Principles Of Investing

One principle of investing you must imbibe early in life is investigate before you invest. This principle is one of the most important of all the principles of money. You should take quality time to study a particular investment you want to get into-Here are the principles of investing you should learn:

Check Every Detail

Never rush into parting with your money. You have worked very hard to earn it and taken so long time to accumulate it. Investigate very well every aspect of any investment you want to go into before you make any commitment. Demand for full and complete explanation of every detail of the investment. Ask for accurate, honest and adequate information  on any investment of any kink. If you have any misgivings or doubts at all. You will be better off keeping your money in the bank or in a good money market investment account. Do not take blind risks when it comes to your finances the outcome could be fatal.

Money Is Easy To Lose

In the laws of investment, the first corollary is “the only thing easy about money is losing it.” It is tough to make money in a competitive market but it is also the easiest thing to lose. A Japanese proverb says, “making money is like digging with a nail, while losing money is like pouring water on the sand.”

The Best Rule Of All

Marvin Davis, a self made billionaire has the second corollary of this law. In an interview in Forbes Magazine, he was asked of the rules of making money. He said that he has only one simple rule. “Don’t lose money.” He advice if there is a possibility of you losing your money don’t part with it at all. This is a very important law that you must imprint it on heart by reading and rereading it over and over.

Time Equals Money

Your money is as a piece of your life. You have to exchange a certain number of hours, weeks and years of your time so as to generate a certain amount of money for investment or savings. That time is not replaceable. It is a piece of your life that is gone forever. If all you are doing is holding on to the money, rather than lose it, that alone will assure you financial security. Remember. Don’t lose money.

Be Smart About Investing

The third corollary of the law of investing is: “if you think you can afford to lose a little, you’re going to end up losing a lot.

Remember the old saying, “A fool and his money are soon parted.” Another saying say, “When a man with experience meets a man with money, the man with the money is to end up with the experience and the man with the experience is going to end up with the money.”

If you can not handle losing 100 percent of your money in an investment doesn’t make the investment at all.

To apply this principle immediately, do the following:

Brainstorm over the various financial mistakes you have made in the past. What do you absence with all the mistakes, what is common with them all.

Invest only in what you are sure and fully understand. Take financial advice only from people who are only financially successful. It is better to save your money without any interest than taking a chance of losing it.

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