Barry Myers

Debt Free | Author | Speaker | Coach

      
  • Home
  • About
  • Financial Coaching
  • Blog
    • Get Rid of Debt
    • Take Control of Your Money
    • Save for Tomorrow
  • Resources
  • Contact

Three Simple Rules for Investing

December 12, 2014 by Barry Leave a Comment

simple rules for investing

There are plenty of fancy investing strategies out there “guaranteed” to maximize your investment returns and all that other stuff. This is not a post about that. This is a post to remind us all of the three simple rules that will keep you from going crazy and “losing your shirt” when it comes time to invest your hard-earned dollars.

1. Invest in What You Understand

No matter how good something sounds, if you don’t understand it, you’d better not commit your money to it. That’s a pretty good rule for life in general. If you have a good, solid understanding of the futures market, options and calls – go for it. Wear yourself out. But I’m not interested in being that “sophisticated” or risky with my investing. On the flip side, I am quite comfortable in the world of savings accounts, CDs, money market accounts, stocks, mutual funds and bonds (to name a few). So I’m going to look at those options and pick what I believe to be the best. That sort of leads us to the second item…

2. Learn

Let’s consider a situation: I’ll give you $100,000 if you’ll become an expert on the ins and outs of your retirement finances. Sound good? Well…I won’t give you that money, but if you’ll learn about investment types (including pros and cons), educate yourself on different options for investing your money, then it’ll give you a return that could make my $100,000 offer seem like small change. If all you understand is a basic savings account, great! Put your money there for now. But don’t leave it there! Learn what is next that will earn better returns at an acceptable level of risk for your age and situation. Constantly be learning.

3. Be the Tortoise

Unless you’re already at retirement age, you shouldn’t look at the investment game as a sprint. It is a marathon. You are not looking to make 15-20% per year EVERY YEAR and if you’re expecting that, you’re in for a rude awakening. That’s not how investments work (in 99% of cases). You should expect to enjoy ups and endure downs. You’re the tortoise. Run your race toward retirement at a steady pace, continually improving your strategy and investing with diligence and patience. Let the market do what it will. You’re looking 10+ years into the future and expecting great things when you invest…not looking simply at next week, next month, or even next year. Be patient and run your race.

Need more guidance for your specific situation? Maybe we should chat.

Share this content:

  • Click to print (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Google+ (Opens in new window)

Related

Filed Under: save for tomorrow Tagged With: slider

Get new content delivered directly to your inbox!

About Barry

Barry is a debt-free author, speaker and financial coach who writes about personal finance issues, helping people get out of debt, live on a budget and make the most of every cent that comes into their hands. He is the author of From Debtor to Better: The Details of Debt and How to Get Out! He lives in Southwest Virginia with his wife and young children.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get Updates Via Email

Get new content delivered directly to your inbox!

Try my online course

Check out my book

© Copyright 2018 Barry Myers

Say goodbye to your debt.get rid of debt

Get Barry’s simple financial tips in your inbox and make the most of your money.

×
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.