7 Tips to Investing Your Money
Tai Feb 13, 2016
There are people who know how to invest their money, and people who think they know how to invest their money.

Here’s the one thing I want you to remember: it’s imperative that you learn how to invest so your money works for you.

This is one of the many reasons why I recently took the time to fly to Omaha, Nebraska for the Berkshire Hathaway shareholders meeting. With 20k+ people from 50+ countries in attendance, I wasn’t the only one there to soak up knowledge from the Oracle of Omaha himself.

I managed to take some notes from the 8+ hours of speaking, with seven tips standing out from the rest.

I know I said it above, but I want to touch on it again: you gotta know how to make your money work for you.

Entirely too many people trade their time for money. They go to work – 9 to 5 every day – and that’s how they earn.

But what they’re missing is the ability to make money while they sleep. This is where the right investing strategy comes into play.

Focus on the Fundamentals

Many people think of investing as nothing more than day trading, flipping real estate, and other means of “making money fast.” While those things can work, you need to focus on the fundamentals.

That brings us to the seven takeaways for investing your money with success:

1. You Can’t Be Good at Everything

Simply put, you can’t be good at everything, which is why you need to specialize in what you understand.

You can apply this to any investment. Take the stock market, for example. Do you want to invest in tech stocks? Index funds? Do you want to be actively trading?

Find on thing in your circle of competence and focus on making it your specialty.

Remember this: if you try to be good at everything you will be good at nothing.

2. Deal with Problems Immediately

When it comes to problems in your life or business, an ounce of prevention is better than a pound of cure.

Here’s what Warren Buffett had to say about this: when a problem arises, deal with it quickly.

Problems don’t go away by ignoring them. Deal with it because it won’t go away. It will get worse over time, it won’t get better.

3. Learn, Learn, and Learn Some More

If you know anything about me, it’s that I love to learn. I’m always talking about reading books, meeting with other successful people, and simply adding to my knowledge base as often as possible.

The more you learn the more you earn. You should never be satisfied with what you know. You can’t rest on the education you have, as continuing education is your key to long-term success.

4. You Can’t Catch All Investments, But You Can Catch a Few

You aren’t going to hit it big with every investment you make. There will even be times when great opportunities slip through your fingers.

Warren Buffett talked about missing out on investing in Google and Amazon.

You’re going to miss out on profitable investments your entire life. The secret to success is ensuring that you don’t miss out on them all.

When it comes to investing, don’t have FOMO. Don’t look back and regret. You don’t need a lot of wins to make money as an investor, you just need a few.

5. Don’t Unlearn Old Tricks

Don’t become so enthralled with learning new things that you forget some of the old-school principles that got you to where you are today.

I keep an Excel spreadsheet with the most important life lessons I have learned. I try to go back and review those so I don’t unlearn stuff.

People make this mistake. It’s okay to do it once or twice – I’m as guilty as the next person – but don’t continually unlearn old tricks. You want to be a one-mistake learner.

6. Keep Your Physical Body Healthy

Your physical health is a must. No matter how much time and energy you’re putting into your business and investing, you can’t let your health go down.

If you let your health degrade, it’s a parasite on your productivity. There are things you can do protect against this. For example, business owners can pay for a gym membership for employees. This is a great way to keep healthcare costs down and employees feeling their best.

7. If You Have Something To Do, Don’t Wait Until Your 90

Most people wait their whole life to do what they want, never realizing that their age is going to sneak up on them.

If you have a goal, no matter what it may be, go for it now. It’s never too early or too late. Don’t wait until your 90 to put your plan into action.

My Final Thoughts

If you follow these seven tips for investing your money, you’ll feel better about your approach and what the future will bring.

Now, it’s your turn.

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