Herb Horsley - Skills of investing money: Skills every man should know,Become the Master of Your Life and Learn How to Improve Your Skills for Personal Success, Skills for Investing Money and Change Lifestyle

Skills for investing money

Everyone should learn the skills to change mindset and invest money, for personal and business success. including useful tips and exercices for personal growth

Table of Contents

Investment is a complex subject. Otherwise, everyone would have known about it and be able to do it. If everyone actually knew about investments, then it wont be a place just for the rich, it would be for everyone.

Thats why, as you are learning about investments, you should also learn about financial intelligence. The two go hand in hand. So, what are investments, or what does investing mean?

Well, investing means a lot of things to different people. For some people, it means buying shares in a profitable company and then maybe selling when the company stocks rise. For some others, it is the buying of mutual funds, and for others, it is buying jewelry and selling later. Some buy mutual funds or treasury bills. Others would buy a piece of land, keep it for a while and then flip it for profits.

Investing involves the acquisition of an asset or goods with the aim that it would appreciate or generate income in the future. These assets or portfolios are usually for the future, could be short term or long term). These investments could be in stock, companies, real estate, or even in ones education or in his/her children. So, investments could actually come in different shades and sizes. Generally speaking, though investments are not only related to money, Investments also can be in terms of time, effort, goodwill and of course, money, in an expectation for high returns in the future. An investor is someone who creates or seeks investment opportunities. Investors make their money work for them.

Investing is one of the easiest ways of becoming financially independent or financially free. There are types of investors and also types of investments one can do; however, before we get there, lets see about financial freedom.

There certain people who dont work, but they earn more than a lot of people who work. One very popular person is Robert Kiyosaki, he retired at 47, and he had investments, which were earning him lots of money, enough money for him to continue to live his lifestyle, without having to work. Another popular guy is Warren Buffet; in fact, he made his money from investments, especially in the stock market. Here are a few reasons why you should invest.

Increase your Money

Investments make your money work for you. That way, youre even able to get richer quicker. You are working and then your money is also working for you. Basically, these are actually the only two ways to make money in our world at the moment. You work for money (self-employed, employee or business owner). And then your money works for you, in terms of assets, stocks, bonds and many more.

Take Advantages of Tax Loopholes

One of the ways for this is to reduce the amount of your income that can be taxed. There are certain kinds of investments, which you can do with pretax money. For example, 401(k), especially those sponsored by employers, can be funded with pretax dollars. Investing from a corporation account also sometimes qualifies you to invest using pretax dollars.

Savings for Retirement

Some people just open an account and keep on stashing money in it for their retirement. This is not a bad thing; at least its better than not saving at all. However, stashing money somewhere might not be the best way to save for your retirement. This is due to inflation. However, to fight against this, money should be an investment. Usually, at a younger age, it is advised that one puts retirement funds in high-risk investment portfolios because they give high yields. And as one gets closer to retirements, lower-risk investments should be considered.

Being Part Sometime New

Certain people are called angel investors; they look for startups or people with ideas and try to fund those businesses in the bid to make money. Sometimes, these startups can make an investor so much more, sometimes more than a 1000% profit. For Jason Njoku, the CEO of Iroko TV, a Nigerian startup claimed to have made his investors more than 100% profit. Of course, one doesnt have to be an angel investor to help float a business.

Leave an Inheritance

This is another way that parents leave an inheritance for their children. Sometimes an asset is bought in the name of the child or money is put in a particular venture and leaving it until a child gets to a certain age.

Hit Financial Goals

Investing is one-way people use in hitting their financial goals. If the venture you invested in turns out to be profitable, therell be more money.

When it comes to investing, you must not only think about your short-term goals but must also consider your long-term goals. You not only have to live in your present but must plan for a future too. If you want to start planning the future, then long-term investing is the best option available. However, there are certain tried and tested strategies that you can use to increase your wealth in the long run. In this segment, you will learn about certain tips that you can use for long-term investing.

A lot of seasoned investors believe that having a couple of top-performing stocks in their investment portfolio can make a major difference. It is a common belief that most of the payout is usually from a couple of investments that are in the mix. Your investment portfolio might include various assets and different investments, but not all of them will perform equally. There will always be certain vendors who provide great returns and whose value keeps increasing. So, spend some time, do some research, and identify the top performers and quickly add them to your portfolio. It is a process of trial and error. It is a good idea to hire the services of a broker who can provide you with sound financial advice. However, please remember that the final decision lies in your hands, and you must do your due diligence before investing.

While you are investing, you will come across certain good and bad stocks, which are a part of your portfolio. If you notice that certain investments arent doing well or are performing poorly, then get rid of them. A common mistake made by a lot of investors is that they allow such sales to hurt their psyche. Its better to get rid of any poor performers right away instead of allowing them to cause any financial damage. Please remember that a good investor not only knows when to get into the game, but he also knows when to quit. Remember the age-old adage, a stitch in time saves nine. Well, this is precisely what you must do if you want to build a profitable portfolio. At times, investors tend to base their investment decisions based on any hot tips they get. Please refrain from doing this. If you want to be a successful investor, then you must do the necessary research along with the due diligence before making an investment.

You must concentrate on the bigger picture. It is important to monitor the way your investments perform. However, if you keep constantly checking an investments performance every minute, it will merely make you panic. To stay interested in your investments, it is quintessential to focus on the bigger picture. Please remember that any volatility in the stock market is only momentary. The investments you made will experience certain fluctuations in their performance. To ensure that your investment portfolio performs well, you must have a combination of short-term as well as long-term instruments. By having a combination of such investments, you can ensure that you will not only be earning profits in the foreseeable future, but well keep doing so in the long run too.