What do nearly all millionaires have in common?
They got serious about money and investing early in life.
Here are 15 rules every investor should learn by 30:
(if you want to become a millionaire)
1. Investors who think in decades will always outperform investors who think in days.
2. Great investments will not always seem like great investments. It pays to be patient.
3. The fastest way to build wealth is to invest in yourself and increase your skills.
There is no alternative for investing in high-income, high-leverage skills to increase your earning potential.
4. The data says index fund investors will outperform individual stock pickers.
This doesn’t mean you can’t be good at picking stocks. It just means it’s much more difficult than you think.
5. Greed and fear will move stock prices wildly in the short term. This volatility will eventually decrease, but the fundamentals won’t.
6. Bull markets are opportunities to make money.
Bear markets are even bigger opportunities to make money.
7. Dollar-cost-averaging (DCA) is the most foolproof way to guarantee long-term success as an investor.
Set up monthly automatic contributions and forget about it.
8. Wealth building is a marathon, not a sprint… knowing this will give you an upper hand against your peers.
Stay committed to your financial goals and remain patient.
9. Companies become great by disrupting markets and making money.
Companies stay great by growing profits and managing cash flow.
10. Volatility is the price you pay for long-term profits. It’s worth it.
11. It will take centuries to get rich by saving, but you can get rich in years with investing.
If you want to build wealth, you must invest.
12. Bear markets transfer money from the emotional to the calm and collected. You’re in control of what side you’re on.
13. Wealth isn’t built from investing one time. It’s built from investing each paycheck consistently for years.
14. The more you look at your stocks the more emotionally attached you feel.
If you want to get your emotions under control, start by automating your investments.
15. You’ll have a higher chance of building wealth if you buy multiple solid companies and diversify your wealth.
Don't spend all of your focus and energy looking for the next Apple.
And there you have it!
15 investing rules everyone should learn by 30 if you want to become a millionaire.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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