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Wanna get rich young? INVEST EARLY!

Wanna get rich young? INVEST EARLY!

  • Wanna get rich young? INVEST EARLY!
  • Midpoint

Want to

GET RICH YOUNG? INVEST

EARLY!

An investment handbook for college and university youth.

Prepared by: Leon Wong L. H.

The writer do not hold any responsibility if any reader suffers any financial loss after

reading this handbook. However, this handbook will support readers to invest.

Contents

What is investment? 1

Rat race? -- 2

What should you prepare? 34

Important things to know 56

Types of investments711

For conservative investors 12

For risk takers -13

Appendix 14

References 15

WHAT IS INVESTMENT? Investing is committing money to an investment like financial assets, business or rental property with an expectation that the investments will pay the investor back with a greater amount of money than what investor could have earned (Nerd Wallet Inc., 2016).

Some people have wrong concepts of investing, investing is not gambling, people should not invest without doing any research regarding the investment they intended to invest (Investopedia LLC, 2016).

Professionals like doctors, engineers, educators, have been suffering financially although they are getting high paying salaries, people are usually trapped in the rat race and unable to live their lives without suffering financially (Kiyosaki, 1997).

Successful investors usually invest to generate passive income, so they will not have to work for money in their entire life. So investing is like putting money into a ‘machine’ that generates money if the money generated by that ‘machine’ exceeds monthly expenses, it means that people will not have to work for money after that. The ‘machine’ have the ability to help people to get out from a rat race. The ‘machine’ mentioned above is known as an investment vehicle.

1

Rat race?

What is rat race?

Most of the people nowadays are trapped in a rat race. Even professionals like doctors, engineers, educators, have been suffering financially although they are getting high paying salaries because they are lacking financial knowledge (Kiyosaki, 1997). Therefore, youth should understand this earlier so that they will not make the same mistakes.

The rat race is caused by our human emotion when we want to have more luxuries that we shouldn’t have. For example, a young couple got married and they bought a house for themselves, claiming that the house is their greatest assets, afterwards they want to have a better car, so they bought the car, then they want to have a baby, so they got a baby, all of these adds up the young couple’s expenses, they work harder every day paying only their liabilities, hence they cannot grow their wealth, that is why the poor always remains poor and the middle class always remain as middle class, they are trapped

in a rat race. (Kiyosaki, 1997).

To get out of rat race is to never get into a rat race, by doing this will help people to grow their wealth easier.

If one day, you are trapped in the rat race, you will have to reduce your expenses and grow your assets slowly by investing whatever it takes.

2

What s~~h~~o~~u~~l~~d you p~~r~~e~~p~~a~~r~~e~~?

Mindset

People that just started investing need to set a mindset before they start investing. This is because there are a lot of misleading concepts about investments like ‘Investments are gambles’, ‘Do not invest, investments have high risk.’ These concepts can mislead you and trap you in the rat race.

The first thing to do before you invest is to build a strong foundation of investment knowledge in your mind by reading and getting various information regarding investments. Youth should learn about investment because they have a higher mental capacity to learn compared to when they are older.

Second, you should understand your own investment style by asking yourself ‘How much risk I can tolerate?’, ‘How much return I want to get from my investments?’. You should know what is your risk appetite and how much return on investment (ROI) you expected. You are either a conservative investor or a risk taker. Conservative investor always plays safe while getting small amount while investing, risk taker takes risks

and get a higher amount of return.

Third, Warren Buffett said, “Never invest in a business you can’t understand”, you must research the investments you intended to invest thoroughly before you invest. If not, you will be gambling your money as your money will have unknown risks and returns. 3

What s~~h~~o~~u~~l~~d you p~~r~~e~~p~~a~~r~~e~~?

Mindset

To be a successful investor, you should focus on increasing your asset column while reducing your liability column (Kiyosaki, 1997). This is highly essential to growing your wealth. The image below shows different classes of people manage their money.

(Image source: http://rentalpropertyinvestment.ca/4lessonsfromrich

***

Visit: http://www.Shakespir.com/books/view/683119 to purchase this book to continue reading. Show the author you appreciate their work!


Wanna get rich young? INVEST EARLY!

'Want to Get Rich Young? INVEST EARLY!' is the ideal investment handbook for young or novice investors that are interested in investments. This handbook is written in simple words and easy to understand about all the fundamental knowledge and mindset regarding investments. The content from the handbook is extracted from successful investors like Robert T. Kiyosaki and Warren Buffet. The treasure lies within the handbook is the fundamental mindset that every investor should have, what should you prepare, when should you invest and how should you invest. Every basic need about investments extracted from successful investors lies within this handbook in a SIMPLE and EASY UNDERSTAND way. As the investment handbook is specially designed for everyone that does not familiar with investments. The handbook is selling crucial investment mindset, investment preparations and investment recommendations.

  • Author: Leon Wong L. H.
  • Published: 2016-11-19 15:25:27
  • Words: 2554
Wanna get rich young? INVEST EARLY! Wanna get rich young? INVEST EARLY!