The 4 Principles of Successful Investing
 

There are only three ways you are going to attain wealth. The first is, you may inherit it. The second is you will build a good business that not only provides you with profits but also the business itself may become a valuable asset. Lastly, you will invest your money wisely and build wealth through capital appreciation. But, did you realise I'm only talking about 10% of the readers of this article. The other 90% will end up on some sort of government assistance during their retirement. That's right, only 10% of retirees will be financially independent.
Now unless you are lucky enough to have a rich family or have a business that one day will be worth a fortune, you will have to depend on smart investing to build wealth. To get you started, I have compiled the 4 Principles of Successful Investing.

1. Save at least 10% of everything you earn
This is the most important principle. Without it you won't even get started. I recommend you take 10% of your earnings and invest it even before you have paid the rent or mortgage. This is far more important than housing believe it or not. You may think you won't get by deducting 10% of your money for investments, but you will. Do a budget - you'll be surprised just how much money you really do waste on, unnecessary things, you'll be horrified in fact.
2. Educate Yourself and Seek Help
Read plenty of books, seek good well informed advice wherever you can get it. Learn how to invest and understand the markets. You must make time for this, it is the most important education of your life - your future depends on it!
3. Invest Wisely - Buy Quality
Once you have educated yourself, don't be lured into silly schemes that could turn out to be scams. Money is hard to make - easy to lose. Always have most of your investment portfolio in solid, good quality, long term growth investments. Always choose investments that make sense and have a bright future. For instance, telecommunications, high technology and the internet, pharmaceuticals and think globally too. Australian markets are traditional "under performers". Ensure you some exposure to the US and European markets.
4. Stay Invested
Once you have accumulated good investments - hold on to them. Don't sell them just because you are concerned by market movements. Keep in mind the markets only fall 25% of the time, the rest of the time they go up "play the odds" stay invested! Very few investors can pick the top or the bottom of the market, nor can they predict a fall. So, don't even try unless you are willing to watch the markets like a hawk every day, which for most people is totally unrealistic. As billionaire investor Warren Buffett says, "My ideal holding period is, forever" .

In conclusion, investing takes time and patience and you must start now, regardless of your age. Don't leave these things to the last minute as many people do. It's your future, it's up to you to make sure it works out well for you and your family.

For more information on this subject, please read the following Trident Press titles:

Investing to Win

Build Your Wealth Today