9 rules for success. place 1,000 dollars in immediately build the fund to cover 6 months expenses ...

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9 Rules for Success

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9 Rules for Success

Place 1,000 dollars in immediately

Build the fund to cover 6 months expenses

Don’t touch this money

Your net worth is everything you own minus everything you owe.

Therefore, you must invest your net worth to beat the inflation rate.

Offense: A good salary and wise investment.

Defense: Limit debt to things that go up in value (education, house)

We must start NOW!

The Rule of 72 demonstrates that time is the key to vast net worth accumulation.

Get in the habit NOW, of putting 10% of your take home pay into an investment.

Direct deposit puts the cash in the investment before your hot little hands can spend it.

If a portion of your investments are going to a specific objective not far in the future, take little risk .

The majority of your investment should be LONG TERM

Risk tolerance dictates what types of investments suit you.

Loan it: Bonds Own it: Stocks

You can buy bonds from corporations or the government.

These are generally safe investments with a stated rate of return.

Stocks represent part ownership.

You can purchase individual shares, or you can invest in mutual funds.

You can gain a lot, or lose a lot.

Young people are in an excellent position to take more risk.

Their time horizon is vast.

They can recover in downturns, and accumulate copious amounts of net worth.