It is possible to create investments that will eventually pay you a salary,
and depending on how well you plan it, it could be a monthly salary.
Ideally this is the type of investment strategy that you would start
working on while you have a job where you are earning a salary every month. To
be successful at creating an investment portfolio that will eventually be
paying you, possibly enough for you to not even have to work anymore, here are
a few rules to abide by.
Rule # 1: Pay yourself first
All this simply means is, dedicate to investing at least a minimum
amount of your earnings every month – at the very least 10% of your salary.
Before you even pay your bills, buy groceries or anything at all, if you truly
want to be a successful investor you have to be really strict about this.
For example, if you are earning ZAR10,000 per month, make sure that you
invest at least R1,000 per month – WITHOUT FAIL! How badly do you want your
future to change? Do you want a better life? If the answer is yes, than you
quite simply HAVE TO DO THIS!
Rule # 2: Do your research
When you invest this way, by looking for value, what you are
traditionally looking at is stocks in reliable companies that you can invest in
for the long term.
Research the companies you are investing in (especially if you are
purchasing shares on the stock exchange). You want to invest in long lasting,
reliable companies that pay dividends. Dividends are the profit payouts that
will become your regular salary – so pick STRONG companies that pay out
dividends to shareholders every year.
But no matter what you end up investing in at the end of the day, make
sure you research it first. This step can help prevent financial loss and
heartache, and can help you to grow your own wealth.
Rule # 3: Diversify
You are building a foundation of wealth for your future. Don’t put all
of your eggs in a single basket and hope that it will be that one thing that
will make you wealthy or financially free. Have a number of investments, (my
YouTube channel is packed full of really great ones to help to get you started,
so subscribe to it today).
Even if you can only afford to invest in only one per month – get started
and do just that.
Rule # 4: Have a plan
Have an investment plan, not sure what that is, then ask yourself these
few questions, once you know the answers to these you will have a pretty good
idea as to what your investment strategy will be:
1.
How much are you going to invest every month?
2. How
are you going to invest every month?
3. How
much would you like your investments to pay you every month?
4. How
much would you have to have invested for this to happen?
5.
How long will it take you to get to this goal?
Once you know the answers to all of these, you are in a pretty good place
to start.
Rule # 5: Invest in yourself
What does this mean? It means educate yourself on what you are doing.
Truly successful investors read books and attend courses on an assortment of investments,
investing strategies, and general self improvement. Get to know every possible
thing you can about what you are doing.
When you know what you are doing, especially as far as investing goes,
then you will be removing most of the unnecessary risk. If you really know what
you are doing then you find it easier and easier to be able to grow your own
financial wealth.
Step 6: Start with a confidence booster
If you are brand new to investing, and you really want to do it so you
can secure your future wealth and take charge of your own money, then start
with something small that will give you great confidence.
A really good place to start would be in an index fund – they have
great returns and are usually quite affordable to get started investing in.
Once you begin to see your money actually growing in value, this will give you
the confidence to really start with investing.
If you are from South Africa, like me, a great site to invest in Index
Funds is Satrixnow.co.za
Looking for possibly the best book ever published to get you started on
your investing journey? Then here it is. It has everything to help get you
started on your investment journey.
Click on the image to get your copy now
Until next time, invest in yourself FIRST!
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