Investing Tips from a Self-Made Millionaire
You can involve yourself in many different things. Here are a few common things people “invest” in:
• 401K or Roth IRA
An investment can be a good thing or a bad thing. Many people involve themselves with something that loses them money. While real-estate can be a great investment if you know what you are doing, investing in yourself is the best investment you can make. Most people falsely believe that a home is a great investment.
No one taught me about money or investing or real estate in school. But that doesn’t mean that those subjects aren’t valuable. Schools don’t teach people how to make a marriage successful or how to raise children, either, and what could be more valuable than that?
A person is obviously going to excel and do best in those areas in which he or she invests the most attention and takes the most action. You have to make an investment in something to get a return. If you retreat, you disengage and no longer involve yourself with that thing.
“The stock market sucks; I’m never investing in it again”—you’re retreating.
Successful people invest time, energy, and money in improving themselves. A lot of the data you hear about with investing is wrong. Here are 3 mistakes people make with investing:
1. Investing too early: Do you think about investing when you have no money? Of course not. People ask me all the time what they should invest in with the 10K they got. If all you have is 10K you are still broke and have no business investing. The best investment I made in my life is not investing. I waited until I had a more significant amount to put my chips down on the table.
2. You start too small: What are you going to do do, invest a nickel? $5 goes up 100 times it’s still just $500 bucks. The think is too small. The only reason to invest is to get rich, to have prosperity. Don’t do little tiny amounts. They won’t make a difference. Don’t invest to grow, invest for freedom. Wait until you have a significant amount to invest. I was 33 years old when I had over a million dollars in the bank before I made my first real estate investment.
3. Diversify: Rich people put all the eggs in one basket. They protect that basket. Don’t put a lot of different eggs in a number of different baskets. Rich people make 1 big deal. Wall street sells diversification. People don’t know what they are investing in. Accumulate cash so you can put it in one big deal. People keep gambling with little pieces and get torched. You have to reduce your risk by doing your homework. You should not give money to people you don’t know. You put $100 into a mutual fund and you don’t even know where it’s going.
Investing is a vital part to earning your freedom. Chances are you won’t inherit wealth.
A good investment is something you put your money in and it explodes. The bank tells you to put your money in a bank and it will grow. No, it won’t. It will sit there. But you need to let your money sit there until you earn enough to save a significant amount.
If you have 100K to your name you don’t want to spend all that in one deal. You still need to have something left, you want to sleep at night. Get your income up and keep parking the money until you have enough to make a big play and still have some left over. I spent 350K on my first deal when I had over 1 million saved.
And remember, you can never lose money investing in yourself. Cardone University is still available for $995. In the big picture, that’s baby money, but can make you big-boy money.