NEWBIES: Things You Should Know Before Investing in Anything
a) Free Time
b) Money to Invest
And, if you don't have free time but have money to invest, then buy yourself free time. If you have free time but don't have money to invest, then make money by generating sustainable income for yourself. If you neither have free time nor money to invest, then I don't know what you're doing here...
If you have money to invest but don't have free time, you most likely worked out four out of the five fundamentals of your financial portfolio. If you don't have free time and suddenly inherited "a lot" of money ("a lot", based on your needs, lifestyle, future plans, etc.), you should check if you got four out of the five fundamentals of your financial portfolio covered. If you don't have money to invest but have free time, first cover four out of the five fundamentals of your financial portfolio, before diving into the 5th. At this point, you, on your own, will know if you're ready to start a business or an investment. So:
=>> What are these five fundamentals?
• 1st = Sustainable Income
• 2nd = Savings
• 3rd = Credit and Network Resources
• 4th = Assets
• 5th = Investments
=>> What does this mean?
• With sustainable income comes savings and the opportunity to grow your specialized skills and knowledge into expertise...
• With growing expertise comes growing sustainable income and growing savings...
• With growing sustainable income and savings come growing credit and network resources...
• With growing credit and network resources come growing assets...
• With growing sustainable income, savings and assets come growing credit and network resources...
• With overflow credit resources and growing network resources come the opportunity to invest...
• With growing investments come growing income, savings, credit and network resources, assets and the opportunity to invest in other profitable ventures, and so on and on and on...
=>> What's my point? Like I mentioned earlier:
• Have free time and money to invest, before you invest in anything. This means cover the four fundamentals first, before you dive into the fifth. If you're still stuck at the fourth, then stay there until you're ready. By doing this, you won't suffer from anything you do at the fifth (unless you do something stupid and exhaust all your credit and network resources, liquidate all your assets, use up all your savings and lose your sustainable income in one fell swoop), because you have all four covering your a$$. This way, you're miles and miles away from ending up as a homeless hype with a bad drug and alcohol addiction. In case your investments fail:
Your sustainable income's still there and growing. You're still liquid, with growing savings. Your credit and network resources are still there and growing. Your assets are still there and growing. You just paid with your free time or spare money for the knowledge and experience you gained from your failed investments. You'll just need to save up free time and money to invest again, and by then, you won't probably make the same mistakes and could most likely have better foresight...
⢠Founder: Grayscale (Manila, PH) & SEO Campaign Manager: Kiteworks, Inc. (SF, US)
⢠Founder: Grayscale (Manila, PH) & SEO Campaign Manager: Kiteworks, Inc. (SF, US)