Talking about the basic investment strategies, if you wish to be successful, you need to learn how to properly invest your money. Unlike what you may think, you really don’t need a college degree before you can start investing. The most important thing is to have a good knowledge of the basics of investing and believing in yourself and your capabilities. It could be that this is the first time you are going out to make an investment and as such, it would be the hardest. However, with the tips listed below, investing your money, especially in stocks and bonds, can be done with little or no stress. The tips are as follows:
• Have A Goal: This is the first on the list of basic investment strategies. Before you invest your money, you should have a goal you want to achieve. That goal should be that at your retirement age, you will have enough investments yield enough cash that you don’t need to ever borrow or sell off any of your investments in order to survive as a senior citizen.
• Work Hard: Having a goal is a different thing while working hard towards achieving it is another. For you to be a successful investor, you need to work hard, especially the first decades of investing. This way, you can be sure that you don’t need to work in your old age in order to survive.
• Spend Less Than You Earn: This is another interesting tip among the list of basic investment strategies. A renowned investor would tell you that the only way you will have enough cash to invest in stocks and bonds is when you spend less than you earn. It is the difference that you invest.
• Pay Down Your Debts First: Before you start investing in stocks and bonds, it would be in your own interest to ensure that you are not in debt. If you are, then you need to pay down the debts before you start investing. This is especially very important if the interest rates attached to your debts are more than 10%. The only exception is when you are earning enough money that after each month’s down payment, you have significant extra cash left.
• Invest In Higher Yielding Stocks: Among the list of basic investment strategies, this is the one that would-be investors who are in debt will find very helpful. If you are investing and at the same time paying off debts, make sure to only invest in stocks that are yielding more than the interest rates. For example, if you are paying 5% interest rates, you should invest in stocks that yield more than 5%.
• Have Savings: The fact that you need to invest for the senior years does not mean you should put in all your cash into investments. You need to have some cash saved up for unforeseen occurrences. Should you lose your job or for some reason, the stocks you invested in comes tumbling down, you need to have a back up plan – your savings account.
With these basic investment strategies, you can be sure of becoming a very successful investor, such that even most college degree holders would not stand a chance with you. Believe in yourself and invest for the senior years.