Smart Money Moves: The 7 Golden Rules for Young Investors

Introduction

Hello friend, today we are going to see this blog about some rules about how we can invest. When you say investment rules, you would expect critical words such as blue chip stocks, face value, and candle stick patterns to come, but there are no such words. we only saw about the basic rules of investment.

1. Start as early as possible

As you know Warren Buffet, who is the richest man in the world, started investment at the age of 11.  But he says that he started late at the age of 11.  Because if he had known this before, he would have started before this. If you don’t start investing at a young age like him, start investing with yourself when you go to work that is the best way of investing. Here are some ideas on how to invest the money you earn, and we also have a 50-30-20 budgeting rule. That means 50% of the money you earn can be used for three things like food cloth’s shelter. The remaining 30% of your salary can be used for gadgets, entertainment, and some more on a weekly basis. You should take the remaining 20% of the income and invest it. This 50-30-20 rule is not set for many people because their family background is not suitable. and also the family situation is not suitable for them. Their needs may change. You can choose this investment plan as per your family situation and it will not be a problem.

The reason to start early is that only long-term investments can create more wealth.  A great example of this is the Waren buffet. Warren Buffet even though his investment started at the age of 11, his 90% off wealth was created only after he was 52 years old So if we want to invest our money, we have to give time for it. If you want to start your investment journey after you go to work at the age of 22, you may have to wait a few years. The solution to this is if you start your investment journey before the age of 22, your wealth will be at a different level by the time you are almost 30 years old. So the sooner you start your investment journey, the more wealth you will start getting.

2. Diversify your investment

The next important rule is what Warren Buffett said about Diversifying your investment: don’t put all your eggs in one basket. Because even if the basket is shaken lightly, all the eggs will break. We should use this thing in our investment. No matter how much money you have, don’t put it all in one investment, separate it into each investment separately. No matter what kind of investment we make, gold, stocks, crypto, mining, bonds, or real estate, then it is better to invest because even if we lose something, we will have a belief that profit will come from Some other things. A lot of alternative investment plans have come up in this period So choose an investment platform like that and start your own investment journey. For example, tyke company is a platform independent company, what they do is to provide a platform to those who want to invest in a startup company. You can start your investment journey in some startup company using services like this.

3. Don’t invest without any knowledge 

The third rule is also Warren Buffett said, if you are going to invest in something, don’t start investing without any knowledge about it. Microsoft owner Bill Gates and Warren Buffett are close friends of each other. Microsoft owner Bill Gates came and asked Warren Buffett to invest in his Microsoft company, but Warren Buffett did not invest Because Warrant Buffett didn’t have that much knowledge about software and hardware so he rejected it. Not only Microsoft but also Google and Facebook. Warren Buffett has not made much investment in these types of Tech companies.  it is because he said that I don’t have that much knowledge in the technology field. So, if you are investing in a company now, then invest in that company only if you know all the business modules of that company and have the knowledge. At the same time if you have enough knowledge about an investment then close your eyes and start that investment it will give you enough wealth.

4. Don’t take blind advice

The fourth rule is also an important rule, that is, blindly trusting in something to do an investment that your friends say, your family says, your relative says. If someone tells you to invest in some properties or some other things, don’t believe it blindly, do research and then make a decision about it.

5. Don’t borrow money to invest

If you don’t have money, there is no problem. We can start investing when we have money. Once you have taken a loan and invested in a business, but now you are in the business and the profit is not coming, then you will have a double problem, that is why many people say that you should not take a loan and invest. 

6. Be disciplined in investing

You have to be very disciplined in your investment i.e. even if you set aside an amount every month for investment, make it consistent and keep it aside as an investment. For whatever reason it doesn’t get distracted, you have to keep this thing consistent. If you are disciplined and consistent and start investing your money now, it will bring you a huge fortune in the future. so be disciplined and consistent, it makes a profit in it. 

7. Invest in yourself