I’m an investor for quite a while, something about four years, to be more exact. During this time I’ve learnt a lot of things, and would like to share some acknowledgements with you, as well as draw some conclusions for myself.
/Photo by Maliha Mannan on Unsplash/
Of course, everything said an written is ONLY my opinion, and NOT a financial or any other legal advice.
So, let’s fast forward to the first part of things to do when you’re an investor:
#1 Invest only that money that you’re ready to lose.
This is my golden rule number ONE which I use from the day one of my investment road. I’ve invested in various projects and things, and quite usually from those who did know something about my investments I’ve heard “Why are you doing that? You’re risking your money! What if you’ll lose it?”. The actual answer is – nothing catastrophical will happen. I invest that money that I’m ready to lose. It doesn’t mean I’m indifferent to the fact weather I lose that money of make it work for me, but still, somewhere inside me – I’m ready to start over if the worst happens. And this is psychological aspect, don’t know whether it can be trained or not, but I’ve managed to have positive impact on my mindset. And that impact was made consciously and by me. :)
#2 Save at least 10% of your money.
Actually, the story about 10% is toughed by all the investing books. Me personally, I’ve managed somehow all the time to save at least a bit more than that. Truth, a while was needed for me (some 3-4 years, I’m a saver much earlier than I’m an investor) to start to invest that money I was saving, for somehow I just hadn’t a clue that you can invest that money…
Interesting thing here is that people usually tend to think that they earn not enough money for to save anything. But from the experience of a lot people as well as from my own – it’s more than possible to save 10%. Even if you earn 100 dollars per month, your 10% will be 10 dollars. And the research and experiments show that by putting aside those 10% you won’t feel the difference in your living standard. It’ll feel just the same as it was before you started saving those 10%. But now, with that beneficial habit, you’ll finally have some money to invest. And let’s not forget that there’s a huge variety of investments. For example, you can also invest in your health or your knowledge.
/Pixabay/
#3 Invest even if you have little money.
Once in my life I’ve been advised that with my small salary as an office administrator in the bank at that time I’m not the one to be thinking about investing anything. I’m a happy person that quite fast I’ve rethought that advice which I took at first and started invested the money I had.
The important thing here is that you should know where to invest and what are possibilities for investor with that little money. So, while saving those 10% you can also invest your time for starters into learning and collecting information, so that use your money wisely.
#4 Invest not only your money, but also your time
When investing in projects – be those startups, ICO’s, some projects involving credits or any others - invest not only your money, but also your time to learn about the project and the team. Everything in this aspect is made by humans, so this is the first aspect you’re actually investing into. Because at the end of the day – most of the success of the project will actually depend on the team behind it.
This is the end of the first part. 📝
🎵 Stay tuned for the second part of Investing Principles next Saturday. :)
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