Saturday, March 3, 2018

There is a common misconception about managing money. Generally, the social expectation is that you need to be born in a wealthy family to have an understanding of the financial market, and therefore be able to define which risks are worth taking to grow your income. Unfortunately, scientists all over the world have to admit that, despite their best efforts, they didn’t find the investor gene, nor did they discover a formula to grow such a gene. What this means is that investment know-how is not acquired by birth. It is a skill that you develop gradually, assuming you’ve got the right qualities to manage financial duties effectively. 

The smart investor rejects unnecessary luxury
Don’t waste unnecessarily
First of all, a good investor isn’t someone who can happily through money out the window with feeling a significant consequence. It’s a person who is acutely aware of the value of money and therefore ensures that there is no unnecessary spending. As successful investments are defined by their ability to get more return for your money, it’s natural for the investor to cultivate budget boosting tips. Getting more value for less money is the definition of quality investment. You may not be yet ready for the stock market, but you can certainly get used to maximize the value of your money by cutting down energy and grocery costs.

Don’t get less for less
Value is what investments are about. An investment that costs less but delivers less too is not profitable. Similarly, you can apply the same attitude in everyday life. Of course, you want to cut down your bills to maximize your wealth, but the process should remain reasonable. Choosing not to turn the heating up in winter might save you tons of money on your energy bills, but putting your health at risk is not a smart investment. In other words, paying less for what you need is not the same than ignoring your needs to reduce expenditure. 

Know when and where to invest
Nobody is born with a knowledge of the best investment solutions. As the finance market is always fluctuating, the smart investor needs to ensure a regular source of information to stay on top of the trend, whether it’s checking the stock score of Vanguard Healthcare ETF or identifying trend patterns in the market transactions in Asia. Similarly, if the stock market isn’t your kind of investment, it doesn’t stop you from learning more about other kinds, such as the property market for instance. 

Sao Paulo stock exchange

Stay informed of your situation
Last, but not least, the best quality of a good investor is to know how much money they can afford to lose. As there is always a degree of risk in investment, you need to be comfortable with a loss, and more importantly, you need to manage your budget closely. Using budgeting apps such as Digit bot or BUDGT, you can learn to keep track of how much you spend and earn. These apps can also let you know how much is available for a financial investment. 

The bottom line is that to become a successful investor; you need to establish a trust relationship with money. You need to understand and respect its value, and know how much you can bear to spend and invest. But there’s no beginner's luck: without educating yourself about the options available, you will burn your gains! 


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