Oftentimes we think about investing money as a way of neglecting it or just throwing it away. We might have trained our brains to think in these directions because of the lack of business and financial education that we get when we are little. We should be thinking about the return of these investments, not about the money that we are going to spend initially.
It might be a little bit difficult to think about the future in perspective. Why? Because we are extremely impatient people, but this is a quality of ours that we need to erase me make it disappear completely. A lot of people leave their jobs and careers just because “nothing good” is happening yet, or because “they still haven’t gotten a promotion”.
Plenty of problems could be solved if we just had patience, and that is exactly the way in which we should be seeing and observing our investments; as something positive and good for us that is going to benefit us infinitely in a couple of years. It could even double or triple our income, and the only thing that we need to do is to maintain our habits and don’t lose our patience. Sounds pretty easy, right?
Why would you want to invest? Because if you keep on saving your money, eventually, as years go by, you’re only going to be losing plenty of money because of the inflation that happens every year, and we are just analysing this by taking into account the inflation that has been happening throughout the last 50-100 years, but maybe in the future inflation is going to be growing two or three times faster than it has until now. We can never know, so saving your money is probably going to make your pockets empty much sooner than you’d like to think.
Another thing you should be taking into account is your passive income. Having just one job nowadays isn’t going to be serving you much. If you have a side job, specially if it gives you passive income is going to allow you to retire earlier and to do what makes you happy before you’re too old to be able to do so.
By investing in the correct portfolio of assets, you will be able to enjoy a 4% withdrawal rate, and with that, you’re going to be able to travel around the world, buy things that you like just for yourself, go out with your favourite friends, etc.
However, Investing is something that makes all of us feel nervous at a certain point. Why? Because we are too afraid to lose our money and to have to start once again from scratch. Hence, learning about investing methods should be a first step toward outsized growth in your portfolio.
Which books are going to help you the most with your investments?
Here are three recommended books that everyone who’s interested in long-term investments should know about. Getting the information straight in order to know when and where you should invest is fundamental.
Pick up a Value Investing book today to start your investment journey on the right foot in 2021!