We have recently talked about the need to be humble to improve your chances of making money on investments. A second attitude to financial success is to have a lot of patience. Let the money work for you. It’s about patience that we’ll talk about next.
What It Means to Invest
Investing money is something extraordinary. Have you noticed that it is possible to “hand over” your money to purchase from a company? And do it virtually instantaneously, at low cost and in complete safety? Investing means putting your money to work for you. Or rather, it means hiring a management team, a set of workers. A cluster of assets … all structured and managed to maximize profit.
As the company or companies in which it invested are making money, have been gaining market share and being more efficient … their owners are collecting the dividends. It is the advantage of capitalism.
You have to give time to time
If by investing your money you are betting on a company, you have to let that company work and develop your business. It’s true that we all want to make money from one day to the next. But this is unlikely. To consistently make money on your investments you have to let money work calmly … and patience.
What If It Is Not Patient?
You have every right not to want to be patient. However, if you are not patient you are not investing. You’re playing. And then maybe you’ll be more successful if you go to the casino. If you want to make money from one day to the next you will be led to take too much risk. It focuses on short-term events rather than long-term trends. It should be noted that it is the long-term trends that can enable us to achieve lasting financial success.
A Lesson of the Rich
The rich put the money to work for you. They invest their money in assets (income-generating assets) and use the credit only when it is financially justified. They rely on quality assets to obtain periodic returns that they then capitalize on to generate additional income. And you know what’s potentially unfair? The income generated by investments has a lower tax rate than the tax rate applied to labor (this for most people).
Want to Start Investing and Do Not Know How to Start?
Many people do not know how to start investing. They think it takes a lot of money to invest in the financial markets. And they think it’s too risky. However, they may already be investing (for example, if they have a PPR or even a home) without knowing it.
If you want to start and do not know where, we suggest that you start to know the simplest products such as savings certificates and Retirement Savings Plans. Also search the Investing section of our website and you will have lots of information that can help you on this path you are about to start.