Top 5 Tips to Invest Like a Millionaire
To be a millionaire, you have to think like one. Millionaires invest money, a lot of money. So your first step to gaining millionaire status is investing. Here are 5 tips to make sure you don’t invest like any old Joe Shmoe and instead like a millionaire.
Count Your Blessings
This saying applies to everyone but in this instance it’s a good saying to keep in mind so you never lose sight of why you invest. Whether you had a good or bad day in the stock market, take time every day to remember how lucky you are. You can also use this saying to remind yourself of what you plan to do with the money you’re earning, like paying for your child’s college fund or that next family vacation. If your only focus every day is how much money you’re making, you’re more likely to become bitter and isolated.
Turn Off the 24-Hour News Networks
Though it can be tempting to stay glued to the news networks and websites to stay updated on the stock market, it will eventually drive you crazy. Stop yourself from checking on your investments more than a couple times a day because no matter how much you obsess over them, it won’t change what’s happening. The financial pundits they have on air aren’t the ultimate authority and taking their advice isn’t always prudent.
Capitalize on Others’ Hesitation
In times of a healthy stock market, or a bull market, it can be an investing frenzy; everyone wants a piece of the pie and pundits have an endless list of investment “musts.” However, when the stock market is in a low period, most people run away from investing. During the low periods can bring you the most return if you’re willing to take the risk. Stay level headed, unlike those yammering pundits, during the bear market and you’ll find yourself closer to your millionaire dreams
Keep a Healthy Emergency Fund
This applies to everyone, but remember if you want to be a millionaire, you need to think like a millionaire. A millionaire wouldn’t have a small emergency fund. He or she would have a huge emergency fund. Before taking too many risks investing, make sure to build yourself a healthy and big emergency fund. Then when you are ready to stick your neck out with some investments, you’ll know you have liquid cash at your disposable should anything go wrong. Though you’ll likely not get much in return for sitting on a hefty sum of cash, you’ll be able to sleep easier at night knowing you and your family will be okay no matter what happens on Wall Street.
Learn From Mistakes
There is no such thing as a mistake if you learn from every misstep you take. It’s inevitable, especially when first starting to invest, that you’re going to make some bad investments and take a few missteps. With your emergency fund in place, you’ll be able to easily smooth over any investing snafus without trouble and get right back on the investing horse. Start slow. Invest only in the best penny stocks online you can find and build your way up after you’ve had some practice and this will help stop you from making a huge misstep.
With time, experience, and trusting your intuition your investments will inch you closer and closer to ranking among the super rich. Good luck!