You absolutely must remember these 6 truths before making any investment decision. They are timeless, and they are true. The more you use them, the more they will help you. Read on, and then share with your friends and family. They will thank you for it…
#1 – There is no such thing as a risk-free investment
Don’t believe anyone who tells you otherwise, no matter how smart or famous they are! And no, your money in the bank is not risk-free.
#2 – Investing is not easy
Unless you are an investment expert and have a lot of time to do research and analysis, it is best to keep things simple and avoid investing in new or untested financial products.
#3 – Always remember the “human” angle
Human beings are rational, but we are also emotional, and that affects our thought process and decision-making. Investing well is about both finance and human psychology.
#4 – Make the Power of Compounding work for you
Albert Einstein called it the 8th wonder of the world. He said, those who understand it, earn it, and those who don’t, pay it.
#5 – Learn to Invest
Investment education can have a game-changing impact on the wealth you create. Understanding how the world of money works will empower you to ask the right questions, be skeptical of tall claims and eventually, avoid big costly mistakes. That is more than half the battle won!
#6 – Always be vigilent
Everything you watch on TV and read in newspapers, magazines or on the internet may not be true. And it is best to operate on the assumption that even the most well-intentioned and skilled investment professional is going to find it difficult to care for your money as much as you do. Common sense and some grounding in investment education will come very handy.
(this article first appeared on March 18, 2016 on LinkedIn)