I thought I had already commented on a post like this that talks about the issue of investments ... I want to share the following information that is quite useful:
# 1 Prepare budgets.
When investing our money it is important to plan what we are going to spend throughout the investment period and, at the same time, what we expect to obtain in return as a benefit. We can not start spending without knowing exactly what the total costs will be. It must be borne in mind that many investments involve management, maintenance, etc. expenses. what must be foreseen in advance. Mainly, to not carry surprises.
# 2 Study in advance what you can lose and what you can earn.
With an example we will understand it better. If investing € 50 can lose them or earn a maximum of 50 others, it may not be worth the investment, since the probability of loss or profit is similar. You can lose as much as win. On the other hand, if investing 50 you can earn 500 or more, things change. You can lose little but earn a lot. There it interests.
# 3 Dispense with debts (if possible).
The debts must be returned. That's why they are debts, because they are owed. To me, in principle, I do not like to be forced. If I can do without borrowing, I prefer it. And if there is no alternative, I do it, provided that there are great possibilities for leverage, that is, if assuming a minimum risk I can multiply the investment considerably, as we have seen in the previous point.
But in principle, as I say, I keep in debt, no, thank you.
# 4 Create separate accounts.
If we manage money from different origins it is preferable to keep separate accounts. For example, we can have money that comes from our personal work, from our partner's work, from the joint fund we have created for household expenses, from a company of which we are owners or partners ...
It is advisable, in my opinion, to keep the money organized and not to touch where it is not due. Thus, we will not be lacking and we will know at all times what is for investment and what is not.
# 5 Passive income.
One of my favorite keys Create a diversified passive income system that allows constant and recurring cash flows. First step, set the income. Next step, perceive the benefits. While doing other things, while you keep other jobs, while you are traveling ... The magic of passive income is that you can earn money while you sleep.
# 6 Diversification.
Investing with head and minimizing risks requires diversifying our actions. We will always choose different alternatives to maximize the chances of success (and minimize those of non-success).
# 7 Invest in everything that can grow indefinitely.
It will always be better to opt for something that does not have a predetermined and short life cycle and if instead it may be growing indefinitely or, at least, for a long period of time.
That quality is very important: the ability to grow indefinitely. Always choose what has no limits. Among other things, because you will need it when you retire (yes, you have to think about retirement).
# 8 Leverage.
And finally, a classic investment: leverage.
Leverage means getting more with less, that is, using the mechanism of the levers: push yourself to earn more, to achieve more, to get more.
There are many forms of leverage in business and investment, but it would be long to expose here. It is enough to indicate the idea to have it present.
In any case, with leverage you have to use your head a lot. We can not get excited easily and lose the criteria.
These are, in short, the 8 keys that I consider fundamental to achieve good investments successfully. By doing so, you will strengthen your future and you will be freer in personal and financial terms, and that, no doubt, will bring you a better quality of life.