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Set goals, for example other then setting up a stable career pay attention to...
NET WORTH
ASSETS
LIABILITIES
INVESTMENTS
CASH RESERVES
another thing to understand and trust is COMPOUNDING, it's a wonderful thing
This is big too, who do you surround yourself with? What kind of friends do you have in your lives? This means a lot, more then one can imagine.
There's a lot more, more nitty-gritty things, the details but these are good starting positions.
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This is easier in retrospect.
1. Set savings and investment goals. Make them challenging and don't be discouraged if you miss them at times. Especially portfolio value goals. There will be peaks and valleys so never give up.
2. Start EARLY, and pay yourself first. Compounding is HUGE. Goes along with goals. Don't accept excuses from yourself to not invest. If you come up short cut an expense, or find a side gig to earn a few bucks. I was very broke at age 25. I repaired friends and families cars on the side 35 years ago. Save up for a vacation and invest some every month. Everybody has a useful skill IMO.
3. Manage risk always, and adjust is as appropriate to your time to retirement. Some take too much, some take too little. Find your comfort zone. It's best to learn the perils of risk early in your life. Losing $5K at age 25 may seem devastating at the time. It's much better than losing $500K at age 60. We can recover from the mistakes of the learning process.
4. Don't EVER get so arrogant to believe you have this completely figured this game out because you haven't. That is why you stay diversified, even when there appears to be a penalty. Invest in many asset classes. Growth stocks, value/DGI stocks, bonds, precious metals, real estate. Pick your poison but mix it up as appropriate for your age. All of these will shine at some point in your investment career. Invest a little in most asst classes early so you can learn how they work, and decide for yourself what is best later.
5. If you succeed at this you likely won't spend it all and you can't take it with you. Enjoy some of the fruits of your labor. This invested a lot of time in this. Have a Will, and decide how you want your legacy divided up. My daughter will inherit most of mine. I may leave smaller amounts to others, and some to a charity or my church.
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01-24-2021, 09:46 AM
(This post was last modified: 01-24-2021, 09:47 AM by rayray.)
fenders...correct! although the "start young" part is too late for us lol
some quotes by various people have also been beneficial
it's not a stock market it's a market of stocks
only two rules of investing
1) don't lose money
2) don't forget rule number one
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It's probably worth it to say something about being careful in marriage, because divorce can rip half your assets away in a flash, and then child support on top of that will hold you down for years to come. After I lost my original portfolio, I wasn't able to start a new one for 3 years.
