What stage are you in your wealth creation journey? Are you an investor or a saver? For a distinction between these two critical components of financial planning, check out this post here.
And if you are looking for a place to start as a beginner to investing, watch the interview below of one of the most successful investors in the world, Warren Buffet.
In this audio, he outlines and explains 5 tips that you should consider as you embark on your investing journey as follows:
- Invest in yourself - you are your biggest asset and the investments you make early in life to grow your knowledge, experience and skills, will most likely be the source of your higher income generating capacity that will help you grow your wealth;
- Get out of cash and get into assets - cash will lose value over time; assets become a hedge against value loss over time from inflation;
- Invest in income producing assets - income you generate becomes a source of additional cash that can be invested to generate more cash and growth in wealth
- Research a company before investing - a lot of the process of investment analysis is more of application of common sense than you think. This point goes hand in hand with the last tip;
- Invest into things you understand - how else will you understand what factors can affect the value of your investments if you dont even understand how the company you have invested in makes money for you?
What stage are you in your financial planning process? Are you an investor or a saver? Which of these tips do you find challenging? Do share your experience and challenges below by commenting to help others or get help.