Start young – or as young as you can.

Start young – or as young as you can.

That means start now. Let time work for you, not against you. The longer your investment fund grows, the more money you’ll have. Even if you invest very conservatively, time and the magic of compound interest will serve you well.

Don’t be someone who says:

“Oh, I wish I started ten years ago. Look where I would be today.”

“I should have invested in mcDonald’s and Chrysler stock back in 1972.”

The past is past. You can’t redesign you past. However, you can design your future. So atart designing you future today. Ten years from now will arrive whether you start saving and investing or not. The choice of what you’ll say ten years from now depends on what you do today.

Protect you investment by reducing risk.

What good is it to save your money, only to lose it later on a speculative risk? It’s better to have a lower return and all of your investment fund than a higher return andsleepless nights worrying about your money.

Certainly all investments have some risk. You’ll want to keep your risk to a minimum while looking out for good returns.

You can invest your extra money monthly in a mutual fund, in real estate, to reduce your personal mortgage, or even in your own part-time or full-time business. Your investment risks decrease with knowledge.

Have patience.

Your investment fund won’t grow rapidly overnight. Consistent investing will give your good returns in a long term. For example, when is the best time to invest in stocks?

The obvious answer is to invest at the begginning of a long bull market ( rising prices). Since no one can accurely tell the future, the best time to start investing for most of us is right now. Obviously stock prices go down also. But a stock portfolio that goes down in price is worth much more than never investing or saving a cent.

Investor who have become rich in stocks have invested over a long period of time. That includes up markets and down markets.

Handle your finances like an adult.

How do four-year-olds handle money? Do four-year-olds use their allowance wisely – or do they spend it quickly on something they want? Usually they insist on spending their alowance the same day they recieve it. Saving or creating an investment fund is the furthest thing from their mind.

If you handle your money like a four-year-old, you’ll have the saving account of a four-year-old.

Don’t worry about inflation.

Inflation will occur whether you save money or not. So why not save money? You’ll like inflation a lot better when you have a large savings account.