Don’t pay late
If you don’t stay current on your bills, things kind of have a domino effect – finance charges beget late fees beget stress beget abject depression about the state of your finances. Whether it’s bills, credit cards, or student loan payments, falling behind can be a very difficult problem to come back from. Interest, late fees and all that other not-so-good stuff can all take away from the money you can potentially save for the future.
If you don’t know where you are headed, how do you get there? You’re an adult now, to paraphrase the Pursuit of Happiness’ rock hit from the late eighties, and you need a concrete plan. Take some time to write your goals down on a piece of paper and plot how you plan to meet them and you could be hitting paydirt before your hair even tries to turn white.
If you really want to accumulate a lot of wealth, it pays to be more than a few steps ahead. Even if you can’t invest much, start with what you can and let your money grow over time. Word from a scientific genius and a wizard with words – “compound interest is the greatest mathematical discovery of all time,” Albert Einstein.
Knowledge and conservancy make a difference
Whether you are looking to invest in real estate, stocks, or anything else, make sure you know how the investment works. The great Warren Buffett was often criticized for not investing in technology during the dot-com boom. But he laughed last. After all, if one lacks the proper knowledge of the rubrics and inner workings of a certain business model, then it is best to lay your hands of it, or at the very least learn these machinations and learn how such a model could and would generate revenue. This is a basic tenet that applies to other investing types as well.
If (place name here) jumped off a cliff, would you?
When a certain investment suddenly becomes a big hit, this usually marks the time when astute investors start their attack on the market. If everybody knows a stock is hot, or that their real estate market is booming, it generally indicates a bubble and that it’s time to cash out. Buy low and sell high – it isn’t rocket science, really. If an investment is hot and lots of money is flowing into it, you can’t buy low.
Don’t try get rich quick schemes
Don’t fall prey to avarice. This is easier said then done, but don’t try to gain too much too fast. Those people who are rich without having to work hard and sacrifice…were born with silver spoons in their mouth.
This is another one that sounds pretty basic, but can be difficult to achieve. Often times people want the instant gratification and go out and treat themselves. Of course how somebody spends his extra cash is none of our business at the end of the day, but saving for a rainy day is always a good idea. Think about how nice it will be when that money is working for you rather than heading out shopping.