Key Tips To Follow Before You Start Investing
Canadian Entrepreneur with Global Invest, on a mission to help people invest in real estate to create generational wealth.
Do you love the idea of investing and feel the time has come to give it a try? I find that one of the most common worries of aspiring investors is knowing the steps to follow when investing and making money.
You should know that financial markets are complex and unpredictable, a situation that sometimes makes it difficult to achieve your goals. In this article, I will show you how carefully following a few steps will help you to not only avoid mistakes but also make money more quickly.
Achieve Financial Independence
Saving money is the first step to investing and earning, but in order to save, you need to have an income and financial independence.
To some people, entrepreneurship seems impossible. Worse, still, being an entrepreneur means they are in a financial mess — they are in the red and they only struggle to get by. Meanwhile, others live in fear of losing their jobs and it drives them to make decisions that they would normally not have made. One is accepting debt conditions that will drive them down because they lack financial comfort.
What you need to do is earn enough to cover the expenses you incur. For this, the rule is often simple: earn more and spend less. I’ve found it is important to have side businesses that do not keep you confined to one job. You should work to where you’re able to save every month. A month should not pass without you having saved. I had this idea to set a monthly savings rate, and I followed it religiously.
Set A Monthly Savings Rate
For those who are able to, I recommend saving at least 30% of your salary each month. You need to save a lot to invest and earn money. I’ve read books that advise saving an average of 10% of your monthly income. Personally, I think that this is not enough.
In my case, when I lived in France, I saved up to 50% of my income. This means that I lived on half a paycheck. I even increased my savings to 70% when I moved to Montreal.
You may wonder how I pulled that off. You have to change your lifestyle.
Cut Your Expenses
I am referring to those expenses that you can do without. These can be short-term impulse purchases. They unnecessarily add to your budget and will leave you with less money to allocate to your savings account. I’ve found that the best way to do this is to save without feeling as if you are depriving yourself of something. But how do you do it? Here are some pointers:
• Set a budget and stick to it.
• Postpone the purchase and take at least 24 hours to think about it.
• Avoid temptations (on the internet and even in shopping centers).
• Avoid impulsive spending.
Train Before You Start Investing
Training is important when you think of investing and making money. There are a few things you need to know about investing before you take the first step.
You need to educate yourself in the field you are interested in. In my case, real estate and online business are the areas where I spend some of my savings. I signed up for training courses to avoid making rookie mistakes, like some of my colleagues. I did not want my first investment to be a total flop. I was keen to find good deals in order to increase my real estate and financial assets.
Mistakes most beginners make are often the causes of big losses in time and money. The training course gave me a solid base in the field of real estate (taxation, strategy, rental management, bank loans, etc.).
You need to be interested in the key points that affect your chosen sector. By this, I mean that you should know the basics, not that you should become a specialist. Limit yourself to understanding the most relevant parameters in order to make the best possible investment choices.
How do you get trained?
I like to say that the secret is to surround yourself with good people. In this case, investors who have more experience than you in the sector you are attracted to. They will make it easier for you to do your job with advice and testimonials on the tricks of the trade. There are also several training models available these days, including:
• Buying books and e-books related to the investment field.
• Subscribing to online courses taught by professional coaches.
• Attending seminars on your investment topics.
Take Action And Make Your Own Luck
Investing requires self-control and a risk-taking attitude; otherwise, you will never dare.
In this competitive world, nothing should be left to chance. Whatever you get must be the result of hard work. In other words, everything has to be earned — nothing falls from the sky.
Taking action is the most effective way to invest and earn money. In addition, it is the best way to achieve your goals more quickly. You can save and train, but if you do not dare, then what is the point?
Fear is a common obstacle that challenges everyone. However, it is how you manage it that is interesting and makes a difference. Take some risks and get out of your comfort zone. Today’s action leads to tomorrow’s results.
Repeat, Again And Again
Always aim for long-term results when investing in real estate or online businesses. Don’t get into the habit of acting on one stock and then stopping. Invest in assets that are likely to be profitable in the long term.
Sometimes, I take just a few minutes to shoot videos for my YouTube channel, but they will be running nonstop to advertise and bring in customers. The key is to do more and more and, over time, you will make money. Don’t get discouraged at the first sign of trouble.
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