'Think' of your money as a vessel for growth.
- Buy things that:
---appreciate in value - investments (stocks, crypto)
---hold their value - real estate (homes & land)
---or have little depreciation - buying used cars depreciates less than buying new ones
Obviously this is over the long term and subject to a ton of caveats. Do your homework before investing or buying anything! Please.
- Don't confuse sentimental value with market value
---Sentimental value is the emotional value that you place on an item.
---Market value is the monetary value the market places on that item.
Just because you think your kitchen is worth $10,000 more because you spent that amount to remodel it, doesn't mean prospective homebuyers bidding for your house will think that as well.
'Invest' in things you understand.
- If you invest in things that you understand, you will have the long-term conviction to stay with that investment. And you won't sell it at the first sign of trouble, usually at a loss. As Warren Buffett also advised, "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes.”
'Protect' your money and assets.
Diversify your Investments -- Not all investments are created equal. And sometimes you could be wrong about the potential of an investment. Diversification protects you from arrogance and ignorance.
Buy insurance -- As your assets grow, so should your insurance that protects those assets. You never know when the next natural disaster; car accident; or health emergency will set you back financially. Make sure your home, auto and health insurance match your assets; plus an umbrella policy for the extras.
Don’t forget to have 3 to 6 months of emergency savings -- You want to be using cash for an emergency, not debt.
'Spend' less than you make; and make more than you spend.
Have multiple streams of income -- do what you love and provide people with what they love. Plus, buy assets that pay dividends (stocks, crypto, real estate, etc...). Do your homework please.
Don't fall for the 'Discount Hustle' -- Only buy things you need on discount. Don’t buy things on discount thinking you need it.
Limit and eliminate debt -- Debt saps you of your future income, and income is a major component of building wealth.
Don’t be seduced by 'Lifestyle Creep' -- Just because you make more, doesn't mean you spend more.
Do you have anything to add?
Stay frosty people. Thanks for reading.
Credit for Images:
https://www.pikist.com/free-photo-ihpqc
Dear @fijimermaid
Finally I've found some time to catch up and read few previously bookmarked posts.
Interesting choice of topic, I must admit.
I like an idea of thinking of our money as a "vessel for growth". It's something we all shall practice.
Another great advice: 'Invest' in things you understand.
However, I do not agree fully with it. I think it's important to burn ourselfs few times before we will really learn anything about investing.
So I would say: invest whatever you can lose and learn as much as you can on the way.
Have a great day buddy,
Piotr
All great points @crypto.piotr.
I like your response "it's important to burn ourselfs few times before we will really learn anything about investing."
God knows that I've done this more times than I'd like to admit, haha. But I have learned a great deal from all of it. I guess we learn as much from our failures as we do from our successes.
Thanks and you have a great day too. 😁
hi @fijimermaid
sorry for late reply.
I've burned myself twice only, but both times really badly lol :P
It happens to the best of us . 😁
Thanks @crypto.piotr.
Hello @fijimermaid
I'm left with diversify, this is a reality, a golden rule in investments, I could say. It seems easy to visualize everything, even more so as you say, but the reality is that in general we are educated in a way that does not allow for easy visualization.
But there we go, at least being here, on this platform, we have contact with other subjects that facilitate the acquisition of this knowledge or that simply make us think about other things.
I like your post and way of thinking. The world communicates much more and we all have access to other people's perspectives and knowledge.
Good stuff @josevas217.
Hello friend @fijimermaid excellent advice I liked very much when differentiating sentimental value and market value, many of us get carried away by unnecessary luxuries and give that sentimental value and in a few years it loses its value.
See you later my friend, great article! 👍
Thank you very much @amestyj 😁
Solid read @fijimermaid
Resteemed already. Upvote on the way :)
Thank you so much @project.hope.
Hello friend excellent publication, the truth you are very right in all the advice you give, I think we can not have all the eggs in one basket, we must learn to diversify income because if we lose some we have the rest available. With respect to expenses most people don't worry about a future and just want to spend everything they earn, but the ideal would be to keep a percentage of your monthly salary or invest it in something that generates another extra income.
I like your comment, "invest it in something that generates another extra income." Not only can we work for money, but also have our money work for us.
Thank you very much for you kind comments @franyeligonzalez.
The key to grow wealth is learning to reinvest the money and not spend it, spending every penny earned is highly dangerous.
100% agree.