Wealth Creation Step Five: Generate True Wealth, Invest Safely.
True Wealth is only generated when you Invest - Most people are reluctant to invest.
Most people will not generate True Wealth.
The reason that most people never invest is that they are scared of losing money. A perfectly reasonable fear to have.
Fear should not prevent us doing things that are good for us, many people are scared of water until they learn to swim, scared to speak with members of the opposite sex until they learn how to talk with them, and many other fears that we all experience and overcome by facing them.
The fear of investing is no different. It is important that you learn how to invest and then follow the Rules for Safe Investing to overcome your fear. With knowledge comes confidence, with confidence comes successful investing and growth in your True Wealth.
To generate your True Wealth, follow these Basic Rules of Safe Investment.
1/ Each Investment must return your capital as a minimum.
2/ Each Investment must make sense when it is made.
3/ Real Estate Investments must be Profitable Immediately.
4/ The core question in any deal is "Who is paying?"
5/ If you don't understand the investment, don't do it.
6/ Limit any Single Investment to 20% of your capital.
7/ Buy books, go to seminars, take courses and Study investing.
All Investment Vehicles (Shares, Real Eatate, Bonds)vary in Profitability in a Cyclic Manner.
It is important for You to Recognise the Cycle and Time Your investments accordingly.
Is always a good investment but sometimes it is a better investment than others. When Realtors are selling record numbers, the Price is about to Rise.
Has never failed to exceed the previous high. Deal only with Blue Chip stocks, sure, some stocks rise faster but the faster they rise - the faster they fall. When interest rates are at their lowest is the time to buy Shares. Sell them when you have achieved your profit goals or when Banks are making it very easy to borrow money.
Stocks and Bonds
These tools are very useful when You sell Your Real Estate holdings before re-entering the Share Market.
How to find the money to build
True Wealth through investing