Learning How to Invest
Learning how to invest. There are three types of people: those who do not invest at all, those who invest not to lose, and those who invest to win. Which type of investor are you?
Learn How to Invest: Passive Investors Lose
The vast majority of the investors are those who invest not to lose. These are the passive investors – usually those who are willing to invest their money, but not their time. They have little financial education, and therefore they tend to simply follow the common advice, “Save money, get out of debt, invest for the long term and diversify.”
Most financial books preach the wisdom of living below your means and saving money for the long term. However, an even more exciting approach would be to discover ways to multiply your income, so you can expand your means instead of restricting it.
Learn How to Invest: Active Investors Win
On the other hand, those who invest to win are usually active investors. They are those who are willing to invest both time and money, and will do everything that is possible to make sure they win. Active investors do not hesitate to invest significant amounts of time and money for their financial education.
Learn to Invest in what you love
That is the only way you can make money in the long term. Do you invest out of fear and greed, or do you invest for fun? Do you think lack of money, or abundance of money?
The active investors, those who invest to win and do win, always think abundance of money, and love the game of investment so much that they find it fun and exciting. While passive investors invest in the savings and mutual funds, active investors invest in businesses and real estate.
Invest in what you love, or at least learn to love what you invest in. When you invest in what you love, you will be driven to find out everything about what you invest in. Learn all the nuances – the more you know, the better decisions you can make.
Learning how to Invest in your financial education
This is the best investment that you will make in your life. Regardless of what you do, you will be affected by money. Time and money are the two constants that run through everyday of our lives. Regardless of whether you want them to or not, time and money will affect your life significantly.
And you can also therefore significantly improve your life if you improve your ability to manage time and money – through financial education.
Is investing risky?
Many people think investing is risky because of the following reasons, as nicely summarized by Robert Kiyosaki.
- They have little financial education.
- They invest in investments where they have little control – savings, stocks, bonds and mutual funds, for example.
- They get advice from the wrong people – instead of getting advice from those who are already rich, they get advice from salespeople and brokers, many of whom are not rich themselves.