21 Rules for Successful Investing

1. Saving is a prerequisite to investing. The number one rule here is to save before you spend. Savings for most people is the money left after spending but successful investing involves planning before you spend.

 

 

2. Invest in Assets. Stocks, real estates, gold and businesses are the best assets for investing.

 

 

3. Think Realistic. Don’t fall for quick rich get schemes and investing is a game best played with patience.

 

4. Think & Plan long term. Again, keep a long term perspective in investing. Plan to at least stay invested for a minimum of 5 years.

5. Keep an eye on taxes. Plan your taxes.

 

6. Look at the big picture first. Write down your debts, taxes, insurance, immediate expenses and then create a plan based on your current situation

 

7. Time frame to the investment. If you have a requirement for spending in next year or so, invest that money in liquid funds.

 

8. Diversification is the key. Never put all your eggs in a single basket. Diversification is the mantra here.

 

9. Time and your investing skills. Investing in small businesses is a time intensive investment while investing in stocks is a time efficient.

 

10. Insurance. Always be appropriately insured in health and life insurance.

 

11. Ignore the minute details. Financial market keeps fluctuating. Ignore the daily fluctuations and stay invested.

 

 

12. Do your homework before you invest. When it comes to investment, don’t fall prey to salesmen advice or tip sellers.

 

13. Stay Invested. Markets keep on fluctuating and there may be times when you seem to be losing money. Stay invested even in these times.

 

 

14. Have realistic expectations. Don’t be greedy and expect to beat the market.

 

 

15. Identify your assets. Identify which assets suits your age, investment objective and risk appetite.

 

 

16. Ignore naysayers. Always look for genuine and authentic financial advice and do not fall for salesmen advice.

 

17. Learn trading. Trading requires one to be disciplined and aware. Make sure your learn the tricks of the trade.

 

18. Financial advisors. Listen to competent advisors. Crosscheck their advice and don’t just follow their advice blindly.

 

 

19. Knowledge is the best investment. Keep learning and adding to your knowledge.

20. Minimize fees. Avoid investments where you have to pay hefty brokerage or commissions.

 

 

21. Health is Wealth. As they say , health is your number one asset. Always take care of it. It is more important than any portfolio. They’re far more important than the size of your financial portfolio.