New investors tend to copy the investment approach of established investors. Yet the latter have already established big businesses, connections, partners, and loyal clients. Already established investors have secured multiple sources of income.
They can afford to lose some money here and there. They can afford to wait before revenues can begin flowing in. They can afford to risk capital on a trending investment opportunity hoping for huge returns.
New investors, on the other hand, operate within a small circle at the dawn of their investment career. Just stepping into that circle for the first time makes you a visionary intelligent person with a higher advantage of making a lot of money and building massive wealth in the process.
As good as that sounds, one mistake with your initial investment capital can kick you out of that ‘fortune’ circle within the first year or month.
The longer you stay in the game the better
Being new at something makes you bad at everything. Not knowing when to invest, how to invest, and why makes you vulnerable and puts your investment capital at risk of total loss. The only way to learn and grow as an investor, and gain the experience you need along the way is to stay in the investment field for a long time. For this reason, you must be humble at first, invest your capital a little at a time, and put it only where it can not be lost.
Put your first investment capital in Assets
Assets have a financial storage capacity. Once you use your money to buy an asset, you can be sure it will be there tomorrow, keeping abnormal circumstances constant. Assets like a rental house are the best for beginner investors. Provided you put in place effective and efficient management systems.
After investing in assets, your most important task is to keep maintenance and operational costs down to the bare minimum. At no point should the expenses of keeping your asset be close to the revenues it generates. The higher the costs, the less it becomes an asset but a liability.
Insure YOUR Assets
After investing in the asset(s), and putting in place an efficient management system that keeps the expenses down — then, you are left with insuring your asset. Yes, an asset has a financial storage capacity, yet still being a new investor who cannot afford to lose their investment capital, you must do extra by insuring your assets.
Insuring your assets protects your investment capital absolutely. It is like putting a multiple lock system on your safe so that if a thief manages to break the first lock, a second or a tenth lock remains on guard.
Don’t joke with your investment capital, you might lose it.
Your investment capital is your lottery ticket to financial freedom. Even better because you’re certain you’ll win. You can even tell when. All you’ve to do is protect that ticket, and keep it away from thieves, fraudsters, too many expenses, foolish spending, premature selling, irrational buying, etc.
Your only job and sole focus as a new investor is to protect your investment capital. Don’t invest in anything where there’s a high risk of losing your capital. Profits may delay, as long as you still retain the capital.
After investing your first capital, sit tight and wait for your asset to mature. Open your eyes as you wait. Think practically about your strategies, believe firmly that you’ve already succeeded, and behave like it, look like it, talk like it, walk like it, plan, and live like it.
Read viii. Dr. Hey You
Read vii. Dr. Hey You
Read vi. Dr. Hey You
Read v. Dr. Hey You
Read iv. Dr. Hey You
Read III. Dr. Hey You
Read II. Dr. Hey You
Read I. Dr. Hey You