Everyone has a different concept of success: someone will be like this if they earn more by 100 more against the background of others, someone will become successful by buying a house or a block of shares in a profitable company. As for me, financial success is the receipt of income not only from the main place of work, but also from other sources.
An article is not just theoretical recommendations on how to become a successful investor from scratch addressed to a beginner; in fact, these are most of the methods gathered in one place that helped me to start generating passive income, which I am happy to share with you.
Table of Contents:
How to become a good investor?
A very important question: where to start and whether a huge amount for investments is necessary in order to receive income. No, you can start working with 100 dollars, but at the same time you need to constantly save profits in order to increase the working amount for investing. Arguing how to become a good investor, you should carefully evaluate and think about such issues:
- Do you have a financial pillow?
- Do you work somewhere and get income from it?
- How much are you willing to invest?
- How much are you willing to lose?
- Realities of the country, legislative conditions and guarantees of investments.
What are the tools for investing?
A successful person is convinced that money should bring new money. At the same time, it is correct when several tools with different profitability and with different risk levels are included in the list of workers at the same time. Fortunately, today the market has something to choose from for the investor. I must say right away: choose a portfolio taking into account personal interests, but if you need help, it is better to attract a financial consultant. This practice is very common in Western countries and has already managed to prove its effectiveness. Remember: success does not come to those who constantly complain about life, but to those who explore opportunities and work with them.
To purchase securities of Russian or foreign companies, you need to open a brokerage account or IIS. Then, personally or with the help of trust, choose which and how many shares to buy. Thanks to securities, in the future you can make a profit due to the price difference at the time of purchase and sale or receive dividends from the companies that pay them.
The principle of operation is similar to stocks: you buy securities, as if lending to a company or the state (not only the Russian Federation). After a certain period, you are paid a profit, and you can get back the spent prices on the purchase of bonds - the nominal value. A good alternative to fairly expensive stocks with large lots. For a purchase, you should contact brokers.
Considering classic or ETFs, you can earn income by buying shares immediately in a large number of shares. It attracts with a loyal amount for the start, as well as the fact that the portfolio is immediately optimally diversified: all stocks at the same time cannot lose value and fall below the rating. The tool is quite popular in Western countries.
It is not enough to know how to become smart; one must learn to apply this knowledge. Mutual funds help to receive up to 5-7% per year, but subject to a minimum contribution. A very popular tool 5-7 years ago in Russia. When choosing a fund for equity participation, pay attention to the indicated commissions. Mutual Fund allows working with stocks, bonds, mixed investments, commodity market, mortgage fund and other instruments.
Studying the step-by-step instructions on how to become a millionaire, the bank certainly will not help much in this. But as a way to invest a small amount so that it is "not eaten up by inflation", and so as not to be kept at home, or if it is simply "superfluous," you can still consider it. Plus, there is insurance from the state up to 1,4 million. You can cooperate with both commercial (as a rule, offer a percentage higher than average) and state-owned banks.
Those who at one time believed in the success of digital gold may have changed their mind several times, but at the same time they are satisfied with the general trend. I agree: you can’t guess the course direction (and the latest PTS leaps confirm this), but with the right approach, you can get a significant plus by investing in the stages of the ICO. Recently, a very popular Gram, but to buy it, you must have a solid capital.
A good and proven option, how to make dollars. When managing commercial or residential real estate, you can rent it out and receive payments in foreign currency. For transparent cooperation it is better to conclude an agreement. Of course, in this case, taxes on profits cannot be avoided. You can get real estate income in such cases:
- if the price rises;
- buy the “killed” option, make repairs in it and sell it profitably.
One of the ways how to make money, provides that you either invest in a company, or you yourself develop a new product, bring it to the market and receive investments from others. We all know about high-profile and successful companies that have raised capital for development through crowdfunding, like Uber, Dropbox, Cloudera. But there are those who may not generate income, and one must be prepared for this also emotionally and financially.
Where to get money for investing?
This question excites everyone who decides to invest. At one time, Brian Tracy, who, although born in a poor family, managed to become a billionaire and gain popularity, answered this question like this: "Accumulate and save." In his opinion, one of the characteristic features of successful people is the accumulation of funds. Among what I can say, referring to my own experience, I will highlight 3 of the basic rule-opportunity, where to get the initial capital:
- savings from stable income (up to 30%);
- lottery winnings;
- gifts, because it is possible that they will give you money, but you don’t really want to buy one, so invest these funds and let them work!
How to learn investing and what qualities do investors need?
There are many books and seminars on how to succeed, as many opportunities to learn about the experience of others. I believe that studying to invest is a long process and there is no final result - a diploma or certificate. They can only become such an adjusted passive income, that you are confident in your future for tomorrow, for a year, or even 10 years in advance. Constantly accumulate knowledge, and check everything through your own experience. But among the qualities that are characteristic of a successful investor, I highlight the following:
- Cold calculation. Few people invest in pairs.
- The decision to invest is best made on a full stomach, and "spend the night" with this thought.
- Less risk! No matter how high the proposed yield is, remember the possible chance to lose everything!
Rules for a successful investor
I regularly read books and listen to audio lessons from the gurus on how to become a successful investor, and many rules have become useful and necessary for me. First of all, I try to constantly expand my portfolio: therefore, stocks of different companies, and participation in cash flow online game equally good, but each in due time. I will introduce you more closely to the key tips that you need to adhere to constantly.
In other words - share risks. As a rule, for every 3 stable instrument, you can add one, but more risky. Moreover, the rule is also relevant when we talk about the amount of investments in such tools. Do not pursue exclusively high interest rates, think about how you will return the money.
Set a clear goal
It’s not enough to know how to become rich, you need to clearly understand why you need it: buy an apartment, change a car, start a business, pay for children’s education - there are many options for spending money. If you clearly draw your final goal in your thoughts, then the money will “go” easier and easier. It’s good when the target is drawn and the accumulation account is kept.
Studying how to become rich, you will often encounter 10 laws of wealth in different editions and from different authors, but what unites them is that they all have a clause on risks. Online projects can turn into scam, the license will be revoked from the broker, the bank will be declared bankrupt. But! We all know the saying about champagne, so it’s worth the risk, but in moderation, to enjoy the taste of sparkling wine.
Do not stop there and expand your knowledge base. I recommend reading books and memoirs, where billionaires share their experience, like Tony Robbins, whose companies give him about 5 billion dollars a year. Discover courses - online training programs that focus on the practical component. Plus, when there is homework and constant contact with the coach.
Advantages and disadvantages of investing
As in any other process, there are pros and cons. They can be described not only by economists or financiers with vast experience, but also by the investors themselves. Among the main advantages can be distinguished - receiving funds without direct participation. I’ll also draw your attention to 3 important investment strengths.
|There is no limit to perfection||You can develop the number of work tools, increase income|
|Perspective direction||With a competent approach, investment is very profitable and has significant prospects for further development.|
|Inflation protection||The accumulated capital works, but not decreases due to the percentage of inflation|
Cons of investments
|Risk exposure||Each tool is risky to some extent.|
|Start-up capital required||To invest something, you must initially accumulate this “something”|
|Investing requires skill and control||It is important to understand the tools, market sentiment|
Myths about investing
There are a lot of tips on how to become a successful investor, free and master of your money, but remember the important thing - they are not all effective and what works well in one case, not 100%, which will work in another. The most popular myth is that you don’t have to do anything, just accumulate capital and that’s all! This is a delusion that can leave you with nothing.
It is necessary to study technologies and discover new tools for themselves, even by giving money in trust. I’ll draw your attention to another misconception: there is no need to keep records. This is fundamentally wrong, because money loves an account, and one way to control it will be Yandex Yammi service, about which much has been written on www.iqmonitor.ru. Quite often you can come across such a concept as a social investor. This is a contributor who uses investments as a way to get stability in social life, to form a financial pillow.
On the other hand, it is an investor who chooses inexpensive ways to invest money - social, for example, deposits or mutual funds. Another concept suggests that this is a way to invest in socially important projects, with a positive effect for many others. Summarizing, I want to emphasize: successful investment is a goal that can be achieved, but not to be stopped at, allowing you to constantly find new and effective tools and receive higher returns. I wish that each of my partners could call themselves successful in investing and receive the same rating from others.
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A professional investor with 5 years of experience with various financial instruments, maintains his blog and advises depositors. Own effective methods and information support for investments.