Jan 18 2011
The older I get, the less I listen to other people when it comes to my own money.Â I guess it’s because I realize that I’d rather be responsible for my financial well being.Â Â If it’s good, I can be happy with myself.Â If it’s bad, I can blame no one but myself.Â The point is, I live and learn with the mistakes and success I have.
It’s just too bad many Americans rely on so many others and thus either blame people for their financial woes or they continue “hoping” someone can get them out of a jam.
And it’s funny because it doesn’t take a whole hell of a lot of advice to listen to, yet so many of us simply ignore the basic principles of finance.Â If anything take these five things to heart……
Educate Yourself and Don’t Use an Advisor
9 times out of 10 an investment advisor earns money off of commissions and doesn’t really care whether or not you profit.Â Another thing they don’t tell you.Â Most times these guys know less than you if you simply took the time to read a couple of informative articles on basic investing.Â Unless your dealing with really complex stuff like the kinds of investments Hedge Funds make then you can easily teach yourself how to properly save and allocate your dollars.
Invest using your own style
This means going with your gut.Â Even if you make mistakes.Â I’ve lost thousands doing stupid shit in my life.Â It’s taken me 7 years to finally accept the fact that I like as little risk as possible.Â So that means I’m gonna do my best to put my money in a place I can’t lose it.Â Sure I’ll take a chance here and there but I know myself.Â I know my goals.Â And I know what I WON’T do.Â Most people don’t listen to their guts.Â Chances are if you’re really uncomfortable about an investment, you shouldn’t make it.
If You Need more Money, Make more Money
Kind of sucks to have 100s of thousands put away, lose half of it and be able to do nothing about it doesn’t it?Â Ask all of America about this problem.Â Which is why instead of worrying about making so much money off your money, why not make more money?Â I know it’s easier said than done.Â But if you put your energy into learning how to make more for yourself then you wouldn’t have to worry as much about investments that may or may not pan out.Â I’d rather take an extra hour a day to earn 50K more a year than worry about that 50K turning into nothing.
“Don’t gamble more than you can afford to lose.”
Virtually no one listens to this but think about it on a smaller scale.Â If you go to a Casino and you say “I won’t spend more than 100 bucks” and you lose that 100 but don’t spend more, generally you’re not pissed.Â If you take out another 100 to win it back and lose that 100?Â Well then you usually leave pretty pissed off.Â Â On a larger scale?Â What if it were 100 times that?Â Just don’t be an idiot.
There’s no such thing as found money
Unless you’re born into wealth, realize you’ll actually have to work for your cash.Â Â Chances are if there’s something too good to be true, it probably is.
Even More Uncoachable Stuff