Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

financial tips?

im 19 atm. do u have any financial tips for time period during ur 20s (20-29 yrs old) and accumulating wealth, as well as buying house, or paying off mortgage etc.? Also, what about real estate? Any tips with that category (buying real estate, property investment) and also stocks+shares?

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  • OPM
    Lv 7
    1 decade ago
    Best answer

    The single largest tip is to never exceed your budget regardless of how good it looks. If you have a credit card, put it in a drawer for emergency cash. It isn't even permissable to use for emergency cash. When buying a car, buy a used car and base the purchase on price, safety, fuel efficiency and repair history of the model. Rarely pay down a mortgage and refinance the rate down when possible. Only use fixed rate instruments unless you are certain you are going to move away in a reasonably short period. Never buy a house as an investment, always buy it as a dwelling. If you were already rich and understood the dynamics of your real estate market, then consider investing in real estate, but real estate investing in some ways requires greater sophistication than stock investing.

    As one realtor who also invests described to me, if you don't have a hundred units, you don't have enough to be diversified or profitable on a regular basis. He is right. Most little landlords don't really make money when opportunity costs are considered.

    Be conservative in borrowing money. You are using someone else's capital and that is good, but be conservative. Worst case scenarios happen.

    In equity securities, learn to do financial statement analysis and do it well. Do not invest yourself until you do. Until then, if you are in the US, go to Edward Jones. They are expensive but they are good and they will keep you out of mischief.

    Finally, 80% of the people who drive cars believe they are better than the average driver. Of course only 50% can be and there isn't any evidence the 20% who do not think they are, are in fact the best drivers. The average investor believes he or she is much better at it than they are. PRESUME you are an inferior investor. This will help you tremendously, especially if you actually get good. Do not select investments you like, this is the path to destruction, exclude investments you do not like. You will find a set you are uncomfortable with but cannot find anything wrong with. This is probably the best set. It is rare for an excellent investor to really be comfortable with their investment set.

    Use objective criteria based upon fundamentals alone and begin excluding choices. Include the entire universe of investments including debt instruments.

    Finally, there is a 50% chance of you becoming disabled for at least three years and a 33% chance of dying before 65 so two other tips. Your most valuable asset is you, so buy disability insurance...very good disability insurance. You will find not all policies are equal. Little differences have big consequences in terms. And, if you plan to marry then buy your life insurance now, it is cheap. Shop around too. The difference over long periods of time between the best and worst policies can be 6x the outcome. If you happen to be Catholic consider the Knights of Columbus, their whole life policies, because they do not pay taxes, come in just slightly below the bond market rates. In essence they act like very strong bond market mutual funds with super low fees.

    Finally, learn to use Excel.

  • Anonymous
    1 decade ago

    this is the secret of the rich 1- have a good image that you gana succeed 2- read the book think and grow rich

    3- do a lot of multiple stream of income real estate start with a small house and then go up look to manage rentals that will help you with the secrets in real estate a good start

    storage a good investment I perhaps is thinking about it now my area its a good investment just waiting for a good deal

    do a net working I prefer http://www.shaklee.net/thehealthyway/distMain

    because its a good stable co.

    partner with a construction team

    the trick is don't stick with one your young just jump do

    watch your health have a lot a success

  • 1 decade ago

    Try forex trading, also you can buy real estate for pennies on the dollar by buying from tax auctions. Check with your county court house.

  • 5 years ago

    the best trading software http://tradingsolution.info

    i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.

    if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.

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  • Anonymous
    1 decade ago

    Buy Lanabs any quantity. Rate 163 at the NSE

  • Anonymous
    5 years ago

    Best advice would be buy stock and share for long term investment

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