Money & The Law Of Investing

The law of investing states that you should spend as much time studying a particular investment option, as you do earning the money that you will put into that investment.

Any investment option you look into should therefore be done with extreme care, and never rushed into.

At a minimum you should have full and complete disclosure of every detail, and if you have any doubts at all, you would probably be better off choosing a safer option such as keeping your money in a bank.

The Only Thing Easy About Money Is Losing It

Making money takes lots of time and effort, but losing money takes virtually none at all. You could spend many years saving something for your retirement, and then lose it in an instant with a bad investment.

Bear this in mind with any investment you look into, and never let anyone pressure or rush you into making a decision you will later regret.

Don’t Lose Money

One of the simplest principles that will virtually ensure your long term financial security is to never lose money.

The money that you currently have is a result of all the hours, weeks and years of your life you have put into earning that amount.

Your money is therefore a part of your life and should be held onto tightly, because once it is gone, it is gone for good.

When it comes to investments you should therefore try to avoid any investment where there is the possibility that you will lose your money unless you can afford to survive that loss.

If all you ever do is hold onto your money, rather than losing it, you can rest assured that your future will be a financially secure one.

If You Can Afford To Lose A Little You Will Lose A Lot

Some people have an attitude that they can afford to lose a little bit of money, because after all, it’s only a small amount and they have plenty more.

There is an old saying which reflects the wisdom of this mentality that you would do well to remember.

“A fool and his money are soon parted.”

And also another.

“When a man with experience meets a man with money, the man with the money is going to end up with the experience and the man with the experience is going to end up with the money.”

Always resolve to hold on tightly to the money you have, no matter how small or large the amount. Once you develop a mentality of losing money, eventually that is all you will do.

Only Invest With Recognised Experts

Any investment you undertake should be undertaken with careful research and with a recognised investment expert who has a proven track record of success.

Never invest with people or firms you know nothing about, and always invest in something you have an interest in or have a good understanding of.

When taking specific investment advice, do so only from people who are already financially successful and not those who are trying to become successful through you.