2. INTRO
FINANCES
While many people excitedly rang in the 2020 New
year, they had no idea what was in store for them in
the coming months. People around the country
would soon be struggling to keep their heads above
the water of the finance pool as stocks plummeted
due to the COVID-19 pandemic. As the country slowly
recovers, many remain unsure as to what or how they
should be investing. By following these tips, you can
slowly start to increase your net worth.
3. HAVE MULTIPLE
INCOME STREAMS
Many people with full-time jobs only have wages as their
income source. They suffer from a complete loss of income if
they lose their jobs. As a result, they might fall behind on their
mortgage payments and lose their homes. Life can get more
inconvenient as internet and power companies shut off service.
People can prevent this scenario by having multiple income
sources. In addition to having a job, people can take on side
hustles, such as managing an online store or creating a blog.
They will have other income sources to fall back on if they lose
their jobs.
4. RESEARCH
COMPANIES
BEFORE
INVESTING
Investors should only invest in
companies that they understand.
Otherwise, they will be gambling
instead of investing. Investors must
research stocks by meticulously reading
financial statements and news articles.
They need to see if the market’s current
view of the company is accurate.
Successful investors take actions that
differ from current market sentiment.
They buy undervalued stocks and sell
overvalued stocks.
5. Stay Invested For
Decades
Investors who try to time the market frequently buy and sell stocks. This
often equates to buying high and selling low. People irrationally liquidate
their portfolios when the market goes down instead of buying things at
discounted prices. Long-term investors avoid making irrational decisions.
They also avoid paying short-term taxes. Instead of watching stock tickers,
these investors use the time saved to create more income sources and
generate wealth.
6. Most people think and behave like employees. They spend decades
working for someone else before retiring at age 65. There is nothing
wrong with wanting a stable career. However, it is not the best option
for wealth generation. By becoming business owners, people can
multiply their wealth in a few years if everything goes right. They can
create a virtuous cycle by using the profits from one business to fund
another business. Entrepreneurship is not easy. However, it can give
people financial freedom at a young age.
BECOME A BUSINESS
OWNER