2007-05-27 06:32:21 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
frequency, your finaincial secret is NOT being money minded? plese explain, thanks
2007-05-27 06:40:12 · update #1
There is really no secret. The first thing a person has to do is to save a reasonable amount of her earnings every year. That might be $3000 to $10,000 depending on her income. The next step is to invest that savings into a diversified portfolio of investments. Over a period of 30 to 40 years that strategy should result in a reasonable amount of financial success.
Some people have a nack for making money. For them there quite possibly is a secret. But the above method will work for anyone.
2007-05-27 07:40:53 · answer #1 · answered by Anonymous · 1⤊ 0⤋
1. Don't buy things you don't really need. ("Oh, that's so cute!" and "This truck is even nicer than Bobby's new one" are WANTS, not NEEDS, so admire them but don't buy them.)
2. Buy the things you do need at the lowest possible price. Use coupons, shop sales, etc. (We have a large pantry and freezer and my wife stocks up on food items when there's a good sale. There are many things she's NEVER paid full price for.)
3. Avoid anything trendy. Popular usually means expensive.
4. Enjoy free or low cost entertainment. (No $100 tickets to concerts or pro sports events.)
5. Have your money make you more money. Invest the money you save in a diversified stock market portfolio. (Index mutual funds are good unless you want to spend a good bit of time analyzing individual companies.) Stocks historically have provided the best returns when averaged over long periods of time.
--- A key piece of this is to NOT panic and pull your money out when the market dives. It's always gone back up again and if you pull out, you miss the inevitable recovery.
Both partners must be in agreement that saving is a goal. It only takes one reckless spender to ruin the couple's chances of becoming financially secure.
2007-05-27 14:47:20 · answer #2 · answered by Dave W 6 · 0⤊ 0⤋
The big money comes from the ability to manage peoples money in a way that attracts more investors. You don't even have to be good at it. Most mutual funds don't beat the the SP 500, but even those managers end up with millions from fees. Donald Trump made billions, yet his company went bankrupt last year.
2007-05-27 18:25:41 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋
Marry someone that will work with the same goals as yourself. Spend less that you make. Started married life by living on one salary and saving the other. Held off on the kid till later. Had the second house by then.
Bought a starter house, sold it three years later, moved up.
Learned a lot about the stock market and invested carefully,
Diversified.
Find out what your good at and use that to build your estate.
2007-05-27 14:07:24 · answer #4 · answered by zocko 5 · 0⤊ 0⤋
Pay yourself first.
Make a short, medium, and long term savings plan.
Put money in high yielding interest savings accounts like CDs or ING.
Use credit cards wisely and pay off your bill monthly.
2007-05-27 13:51:07 · answer #5 · answered by queen_of_inkland 4 · 1⤊ 0⤋
intelligent risk taking abilities + not being money minded + strategic planning (looking into the future) + smart work + hard work
2007-05-27 13:36:56 · answer #6 · answered by frequency 1 · 1⤊ 0⤋