Most people invest like maniacs
I see so many people fucking up their chance of building sustainable wealth and creating a solid passive income for themselves.
There is so much that I can say about this I hardly know where to start.
Perhaps that's where I'll start is the start...when investing, which EVERYONE should be doing, start at the end. The end being what kind of life do you want to live? What financial goals do you have? what are the time frames?
Then you work backwards and invest in assets that support you.
The thing is I see most people do is that they start with the investment and then fit their goals into the investment.
Rather than focusing on themselves first.
It's always about you always, that's the start of it all. Investing, running a business, living your life.
Make it about you first.
If you want freedom, flexibility, and long term stable income, then invest accordingly.
Don't try and shoot the lights out with your investments, use your ability to make an income to do that.
If something promises long term returns over 10% pa I wouldn't touch it with a 10-foot pole.
Just because something has done well over the last few months is really irrelevant.
Unless you're an active trader, and let me tell you, I don't like your chances.
There are incredibly smart people who have been to Ivy League schools that do this for a job 14 hours a day and 70% of the time they get it wrong.
You might get lucky, but over 5, 10, 20 years, you're going to lose my friend.
Zoom out, make it easy on yourself, use the power of compound interest (Einstein said it was one of the wonders of the world), focus on what you're good at & what you enjoy and stop trying to be an investment manager, understand the basics and how to put it into place practically so it's automated.
You actually cannot lose if you do it this way, in fact, there is 99% chance that you'll make money over a 15 year period.
But as an active investor (the ones who are buying & selling & focusing on the short term) their average return is a measly 2.8% over 20 years, compared with 9.8% doing it the simple & effective way.
Most people don't understand asset classes and how to use them to their advantage, instead, they run around like headless chocks investing in random shit they 'think' will do well. They have no idea how to diversify or what that means exactly.
Or they are busy paying off their mortgage and not investing in any other assets that are actually going to provide them with passive income. A home is not a financial asset. And waiting until later is going to mean forging the power of compound interest.
OMG and don't get me started on crypto. I am actually a huge fan of the concept. But I wouldn't touch it.
In general, the people who are into crypto also totally piss me off, I love many of them, but fuck they drive me crazy.
Cryptocurrency is NOT part of my long term diversified portfolio if it was it would be 5% max.
It doesn't produce an income or a service like say Apple or Google. It has no VALUE. It's so fucking volatile, the value of it purely based on demand not on the intrinsic value because IT HAS NO INTRINSIC VALUE. You can't do anything with it other than sell it to someone else.
I know there are some that actually provide a contractual type of service, but in that case if I wanted to be an active investor and really wanted to get in I'd be investing in the company not the currency.
It's not really an investment and not really a currency.
My man Warren Buffet called crypto 'rat poisoning squared' ....
I'm all for the future and the free world, we do this with our purchasing power, the products & services we buy keep these big organisations alive. We have the power...There will always be a place for buying companies. Companies that actually produce something.
Most of us weren't taught anything about money or finances, women seem to be particularly behind and I believe it's because they are generally more cautious, which can actually be used to their advantage. In fact women tend to outperform men once they do get into investing.
- Do you notice how there are a lot more men invest in crypto than women? Just a side thought.
On Tuesday I'm running a free Money Management Masterclass for Women, I want to talk about cash management, investments & making more money. You can sign up here. https://www.freyasavage.com/livemasterclass
PS- School of Money is open for enrolment this is a deep dive into EVERYTHING money, how to make it, how to manage it, how to make love to it, how to keep it around.
We go live in December and you'll access to the community, workshops & coaching calls right now. Click here to find out more. https://www.freyasavage.com/schoolofmoney