Investing 101- Special Article

Do you want to become a savvy and astute investor?

Have you been investing for years?? Or are you just starting out?

You know that there is a better way to reach financial stability and financial freedom, you’re just unsure of how?

This is for you!
Don’t just take our word for it- look into it, as said in this tutorial, do your due diligence!

Investing Intro- “Taking your personal financial power back into your own control is a learning curve” and we have found the best way to start your education in investing- and the best part about it is that you can make your hard-earned money grow while you are learning!

What is Investing-“Make your money work so it earns you an additional income or profit. It is not gambling.”  This strategy is low risk, conservative and consistent. The outcome of every action you take with your money is known before you even invest your money.

I Feared…

I feared being alone until I learned to like Myself.
I feared failure until I realized that I only Fail when I don’t try.

I feared success until I realized that I had to try in order to be happy with myself.
I feared people’s opinions until I learned that people would have opinions about me anyway.

I feared rejection until I learned to have faith in myself.
I feared pain until I learned that it’s necessary for growth

Investing 101- Conclusion

Topics in this tutorial:

• Investing is making your money work for you.
• Reinvesting allows you to take advantage of compounding.
• Each investor is different in his/her objectives and risk tolerance.
• There isn’t one single strategy that can be used to invest successfully. There are many.
• Each investment vehicle has its own unique characteristics.

This is the foundation of knowledge any investor would be comfortable with.

These concepts mean nothing unless you can put them into practice. Take action and make your financial goals happen! It’s great to know compounding accelerates your investment earnings, the real question is how do you take advantage of compounding and actually make money?

Here is an example that demonstrates how to put what you’ve learned into action.

Investing 101- Types of investments

There are many ways to invest your money!

To chose which investment vehicles are suitable for you, you need to know the characteristics of them and why they may be suitable for a particular investing objective.

Bonds

These are in the general category: fixed-income securities. The money you will receive at the end of the investment period is fixed.
A ‘bond’ is often commonly used to refer to any securities that are founded on debt. That means that when you purchase or buy a bond, you are lending out your own money to a company or the government. They then, in return agree to give you interest on your money and pay you back the whole amount you lent them. So if you lent $200 000 to a company at 5% p.a for 5 years, you will get back your full $200 000 plus 5% for each of the five years.

Bonds are attractive because of their relative safety. If you are buying bonds from a stable government, your investment is virtually guaranteed, or risk-free. The safety and stability does come at a cost… Because there is little risk, there is little potential return. The rate of return (profit) on bonds is generally lower than other securities.

Stocks

Investing 101- Contradictions

There are no indisputable laws, nor is there one correct way to go about Investing.

Within the kaleidoscope of different investing styles and strategies, two opposite approaches may both be successful at the same time.

An explanation for some contradictions in investing, is that economics and finance are social (or soft) sciences. In a hard science, like physics or chemistry, there are precise measurements and well-defined laws that can be replicated and demonstrated time and time again. In a social science, it’s impossible to “prove” anything. People can develop theories and models of how the economy works, but you can’t put an economy into a lab and perform experiments on it.

Investing 101- Know yourself

As an investor- consider yourself an investor now that you have embarked on learning the many ways to get money to work for you!- it would be wise to learn from the famous Greek maxim inscribed on the Temple of Apollo’s Oracle at Delphi:

“Know Thyself”

Success depends on ensuring that your personal characteristics fits your investment strategy.

All investors are trying to make money

Each and everyone comes from a diverse background and has different needs, hence each individual invests differently from the next. Specific investing vehicles and methods are suitable for certain types of investors. Although there are many factors that determine which path is optimal for an investor, we’ll look at two main categories:

Investing 101- Compounding

Compound Interest

Albert Einstein referred to compound interest as “the greatest mathematical discovery of all time“.

This is true because, unlike the trigonometry or calculus you have studied in high school, compounding can be applied to everyday life.

The wonder that is compounding (often called “compound interest“) transforms your invested money into a state-of-the-art, highly powerful income-generating tool. Compounding is the process of generating more income on invested money’s- reinvested income. Basically using the profit you have already made to make even more money. It requires two things: the re-investment of earnings/income/profit and time. The more time, the more you are able to increase the income potential of your original investment.

If you are a bit lost- it will become clearer in this example:

Investing 101- What is investing?

Investing

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

It’s very simple: investing means making your money to work for you.

It is a different way of thinking about money. Growing up, we were taught that the way to earn an income was only by getting a job and working. And that’s exactly what we all do. There is just one big problem with this: if you want more money, you have to work more hours- as you are trading time for money. However, we’re humans not machines- there is a limit to how many hours a day we can work and still maintain a healthy balance, not to mention that having all the money we want, is no fun if we don’t have the time to live the lifestyle we were aiming for in the first place.

Investing 101

Introduction To Investing 101

Have you ever wondered how the many millionaires around the world, in all different professions, got their wealth- AND kept it growing and growing? How did the civilian astronauts generate $550 million to take a ride to space? How do some people seem to be above the “work, work, work and make your way up” system? Do you dream of living the most best lifestyle that is possible and being financially free to retiring early (or of being able to retire at all)?

Do you know that you should invest, but don’t know where to start?

Life Becoming a Roller Coaster…?

Nothing is in your control…

It happens often in life when we are living the way we are comfortable with or in the exact way we’d like everything to flow… and then life throws you into the circus and you’re juggling a million things while stepping onto the roller coaster- simply because there is no other way to step toward living life the way you most desire…! What can you possibly do when life becomes a roller coaster ride?

Climb into the front seat, throw your arms in the air, and make the most of the ride!