Everyone wants to “make money work for them”, but to do so we must know how to invest well, and this is where most fail.
Surely you have heard of Warren Buffett. He is by history and present, one of the flagship investors, who marked a before and after in the way of investing.
Also read: What Bill Gates learned from Warren Buffett.
Buffett holds a meeting with the shareholders of the Berkshire Hathaway company, of which he is CEO and founder, and many people attend it due to the great lessons that the magnate shares (as of 01/03/18, he holds the position 2 of the richest men in the world with 85.6 billion dollars).
Among the attendees of the last meeting is Tai Lopez, known for being the author of the 33% theory.
Below we share an excerpt from his blog in which he shares 7 strategies to invest money well, which he extracted from the meeting with Buffett.
There are people that they know how to invest your money and people who think They know how to invest your money.
Here’s one thing I want you to remember: it’s imperative that you learn how to invest well so that your money works for you.
Lots of people trade their time for money. They go to work, 9 to 5 every day, and that’s how they earn.
But what they lack is the ability to earn money while they sleep. This is where the right investment strategy comes into play.
Many people think that investing is nothing more than a daily negotiation, changing the real estate business and other means to “make quick money”. While those things may work, you need to focus on the fundamentals.
That brings us to the seven key points for successfully investing your money well:
1. You can’t be good at everything.
Simply put, you can’t be good at everything, so you have to specialize in what you understand.
You can apply this to any investment. Take the stock market, for example. Do you want to invest in technology stocks? Index funds? Do you want to be actively trading?
Find something in your circle of expertise and focus on making it your specialty.
Remember this:
IF YOU TRY TO BE GOOD AT EVERYTHING, YOU WILL BE GOOD AT NOTHING. Click To Tweet
2. Deal with problems immediately.
When it comes to problems in your life or business, a pinch of prevention is better than a pound of cure.
This is what Warren Buffett had to say about it: When a problem arises, deal with it quickly.
Problems do not go away by ignoring them. Take care of it because it won’t go away. It will get worse over time, not better.
3. Learn, learn and learn some more.
If you know anything about me, it’s that I love to learn. I’m always talking about how to read more books, meet other successful people, and just add things to my knowledge base as fast as possible.
The more you learn, the more you earn. You should never be satisfied with what you know. You cannot rest on the education you have, as continuing education is your key to long-term success.
4. You can’t do all the investments, but you can do some.
It is not going to make you a millionaire with every investment you make. There will even be times when great opportunities will slip through your fingers.
Warren Buffett talked about missing out on investing in Google and Amazon.
“You will miss out on profitable investments for your entire life. The secret to success is making sure you don’t miss them all.”
When it comes to investing, don’t FOMO (fear to continue). Don’t look back and regret it. You don’t need a lot of earnings to make money as an investor, you only need a few.
5. Don’t unlearn the old tricks.
Don’t get so enamored with learning new things that you forget about some of the old school principles that got you where you are today.
I keep an Excel spreadsheet with the most important life lessons I’ve learned. I try to go back and review them so I don’t unlearn things.
People make that mistake a lot. It’s okay to do it once or twice but not to do it every time. You want to be a single mistake’s apprentice.
6. Keep your body physically healthy.
Your physical health is essential. No matter how much time and energy you put into your business and invest, you cannot allow your health to deteriorate.
If you let your health deteriorate, it will become a parasite on your productivity. There are things you can do against this. For example, business owners can pay for a gym membership for employees. This is a great way to reduce healthcare costs and keep employees feeling their best.
7. If you have something to do, don’t wait until you’re 90.
Most people wait their whole lives to do what they want, not realizing that their age is creeping up.
If you have a goal, no matter what it is, try to do it now. It is never too early or too late. Don’t wait until you’re 90 to put your plan into action.
Conclusions:
If you follow these seven tips for investing your money well, you’ll feel better about your approach and what the future holds.
Now it’s your turn to do it.
Remember that if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
