So what is the best investing money advice available today? First of all, you need to realize that when it comes to your finances, you are in control. Don’t blame any mishaps on somebody else.
By far, the most important thing when it comes to investing money is the numbers. Unfortunately, the vast majority of investors ignore this small detail when laying their money down.
This happens in all kinds of investments, whether it be real estate, foreign currency exchange, stocks, etc. Instead of investing in something because the numbers are great and it has a good chance of turning a profit, most people simply invest because some investment expert told them to.
They are giving away power to somebody else in this circumstance instead of taking control of their investments. Here’s an example:
Typically, when some hot shot stock expert gives investing money advice that a stock is about to go up (or it already is) thousands of investors rush to invest in that stock, and for a while the stock skyrockets as everyone jumps on the bandwagon. Unfortunately, 99% of those investors simply invest because the stock price is going up; they never bother to check the financial records of the company they are investing in.
While for a time the stock may seem like a good investment because of the bandwagon effect driving the price up, the market always values a stock long term according to its’ profitability. Therefore, if there is no profit from the company in questions, sooner or later the market will value the price according to it’s actually profit.
The same thing happens in real estate. Often times, investors will simply put their money into a property because a friend told them it was going to be “huge” and they were going to make a killing on it. Of course, they never bothered to check the numbers and make sure the investment would be sound.
Therefore, no matter what field of investing you plan to embark on, the best investing money advice anybody could ever give you is that there is simply no substitute than being financially educated. Yes, it takes some work and dedication, but there is no other way to get rich today.