Investing is not a race-The Basics of Investing
You are not here to try and finish first
All you need to do to make more money is simply focus on becoming a better investor. The real objective of the process is for you to become a better and more educated investor anything other than that is foolish and risky the objective of the rich is to have your money work for you so you don’t have to work why not start where you want to wind up golfing is a game you can play for life, football is something you can play for a few years, why not start with the game you will end with the basics of investing, now you have two plans in place
The plan for security and the plan for comfort will explain the basics of investing
I’d like to explain that too many people begin investing without having the first two plans in place and that was risky in my mind after you have a plan for security and comfort in your mind, you can experiment and learn more techniques to utilize different investment vehicle that’s why you need your automated investment plan in place first before pursuing the plan to be rich
1) Basic Investing rule number one- always know your income goal) Earned income income is derived from a job or labor. This is also the highest taxed income. It is the hardest way to build wealth)
Portfolio Income derived from paper assets, stocks, bonds, mutual fund portfolio income is by far the most popular form of investment income, because paper assets are so much easier to manage and maintain than any others) Passive Incomeincme generally derived from real estate can also be income derived from royalties from patents or license agreements, 80% of the time passive income is from real estate.
Basic Investing Rule number 2:Convert your earned income into portfolio income or passive income as efficiently as possible