There are brilliant investors, and there are not so brilliant investors; which do you think makes money and finds the financial freedom you seek? There are things smart investors do, and things smart investors don’t do to become rich.
Take these 3 tips on what not to do if you want to be a successful investing guru:
1.) Pay Taxes and Get Out of (Good) Debt
There are two groups of people. One group thinks they know what debt is, and try to get out of it. Those people don’t know what debt is, at least not good debt. Right now good debt is cheap, and good debt makes you rich.
The same goes for taxes. Taxes aren’t meant to harm the rich. Taxes are actually designed to make the rich richer, and allow all of us the opportunity to make millions of dollars while paying zero tax, legally. Which is why you can avoid paying taxes by seeking out the loopholes for entrepreneurs and investors.
Good debt, taxes, investing, all of it requires financial education, that’s how you figure all of this stuff out and that’s how you become rich. If you don’t have that financial education, it’s a tough road. If you don’t have the financial education you need, you’ll stumble around and make a lot of mistakes. So the reason you want financial education is to shorten the time you’ll spend stumbling and making mistakes. At the end of the day, financial education accelerates your process.
2.) Skip Financial Education and Hire a Financial Planner Instead
People who don’t want any financial education think they know all of the answers. For them, they find it best to just save money while gaining 1% interest on savings. Meanwhile, the government is going to continue printing trillions of dollars. These people will also willingly turn their money over to a financial planner, who will in return put it in the stock market; which is absolutely the most risky thing you can do with your money.
Your money, your decisions. If I followed a stockbrokers’ advice instead of making my own choices, I’m confident I’d end up broke. That is why financial education is so important if you want to find financial freedom. By doing so, you won’t be taken advantage of by brokers.
Don’t get me wrong, they’re good people, but at the end of the day they work in sales and it’s their job to take our money and do something with it. I encourage you to get financially educated and make these decisions yourself.
3.) Invest in Things You Can’t Control
The big difference between investing in the stock market and I invest in is I invest in things I can control. The stock market is a dangerous playground if you don’t know what you’re doing. My investments have real income and real expenses. When I buy an income property, I know I’ll get positive cash flow from it. I invest in things with moving parts that I can see, control, and adjust to.
Those who are financially uneducated depend on mutual funds and other similar investments for their retirement; and that’s no bueno. I want you to make smart decisions for the present, and your future; the first being to get financially educated and never think you’re done. I’m still learning on a consistent basis, because if you make sure the education never stops, neither does the opportunity.
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