This is the last step in our complete series of Getting Started Investing. If you’re a beginner who’s looking to make your first investment and build wealth for the future, then read on.
Ah, the fun stuff — building wealth! Is there anyone who really doesn’t want to be wealthy? Let’s start with spilling the “secret” to wealth building.
Take Risks — Lots of Them
Sounds scary, right? Well this isn’t roulette, you need to take calculated risks. Go out on a limb. Jump at new opportunities. If you refuse to leave your comfort zone, you will probably fail. Plain and simple — you have to put yourself out there. Repeatedly.
It won’t all work. You will likely fall a few times because you took a risk. That’s fine. High risk, high reward.
For more information on the wealth building “secret”, check out The Secret To Building Wealth.
If you are wealthy (or will be some day!), you might want to know how wealth affects your investing strategy. There are a few items you may want to consider! Read about these at Does Wealth Affect Your Investing Strategy?
Choose an Investment Strategy
Building wealth happens over the long-term. Investors need two things: patience and consistency. Boring, right? Yes, but important. Once you choose an investment strategy you need to stick with it. Here’s why:
Understand there will always be diversions. Do not fall for the “grass is greener” thought process. There will always be a stock that looks like a better place to invest. However, you don’t want to spend your time chasing after the investment du jour. Stick with your picks and let time work its magic.
What works for someone else, may not work for you. While you may hear about exciting investments that don’t align with your strategy, those investments may not work for you. Perhaps they are riskier than you feel comfortable with. Perhaps they are in a sector you don’t fully understand. Invest in what you know and don’t deviate just because the media is abuzz about an unfamiliar stock.
Your investment strategy needs time in order to succeed. Choose investments and then wait. Wait for years and years and years. Patience is a virtue and in time it will all pay off (literally!).
Changing strategies may mean that you don’t have a strategy. If you are easily convinced to change strategies, you might not have a strategy at all! Do your research and develop an investing strategy. Stick with it and let time do its thing.
The Most Important Investing Advice
Finally, I have the most important investment advice I have. Invest in yourself. By investing in yourself and your investing knowledge, you will become a better investor. Here’s how:
- Attend investment seminars. Attend a few investing seminars each year! They can be expensive but can often make up their cost in the knowledge you gain and the returns you get from that knowledge. You will also get the opportunity to meet with other investors.
- Improve your business or career skills. Take courses that will improve your investing, your business, and/or your career skills. The more you make, the more you can invest!
- Regularly read and follow investment related blogs. This will keep you up to date on investing news and current events, as well as give you investing ideas you hadn’t considered previously.
- Network in investment communities. Connect with other investors to learn and ask questions without paying an advisor. Investing is not something you should do alone.
- Read books written by successful investors. Read 3 or 4 investment books per year. Even try stepping out of your box a bit and read books that run counter to the mainstream. You might learn something you had never considered.
- Choose a successful investor mentor to follow. Find someone within your circle who is a great investor to be your mentor. No one in your circle? Network to find someone. After that, choose a successful investor/author and read everything they have ever written.
- Always be open to changing circumstances. Keep your eyes open for new opportunities and changes in the market. Yesterday’s successful securities may not be successful forever. Be open to change.
To read more about investing in yourself, read The Most Important Investment Advice: Invest in Yourself.
If you really want to take it to the next level, subscribe to our investing secrets mailing list. Learn about:
- How to beat 80% of professional fund managers over 10 years
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..and many more tips with 52 in all. Get a new tip once a week.