Saturday, August 11, 2012

WHERE TO INVEST?

7 DAILY NUGGETS

How about starting investing in assets and stop spending in liabilities?
Assets create wealth while liabilities create dependence.

1) The best investment you can make is in you. Yes, it is an intangible investment that will produce tangible results. The fruit of this investment will be tangible long after you are gone. Think like Abraham Lincoln did. Plug into a lifelong education system. Security today in no longer where it used to be. Security today is in the quality of our thinking and the speed of our learning and changing. The time has come for us to dream big and invest in our dreams. The only true education is a self-directed education. The power of learning comes from self-discovery. Read the right books, listen to the right information, attend the right events, and associate with the right people. Travel with a wide open mind in educational fun trips. Be part of a community of learners and doers. Invest in living a life where you can leave a legacy. Invest in your health, in your friendships.

2) Invest in the right mentor. Look for someone that has the results you want in life. Ask someone who you admire and respect to mentor you. A mentor gives us perspective and honest feedback on our blind spots. Perform the assignments given to you with utmost dedication. Investing your time and money in a mentor is the second best investment you can make. If you are not well, you will not be able to care and help others. Prepare and your chance will come. Take time for self-evaluation and reflection. Self-deception is the enemy of greatness.

3) Save and build a cash reserve. Be ready to pull the trigger when a great investment opportunity arises. Without it you will be spending precious energy worrying how to pay for those unexpected expenses that always seem to come when we are low in cash.

4) Invest in a business that will outlive you. Invest in a business with a system proven to produce results. Invest in a business where you can learn and grow and help those around you do the same. Invest in a business where the size of your business is equal to the size of your leadership. Invest in those you care about and love. Investment in people produces results for many generations.

5) Pay down all debt. Start with the highest interest debt and work your way down to the lowest interest. If you have to take on debt, never finance a liability, only assets. If we have to finance our entertainment it is not time to play yet.

6) Invest in value stocks. Build a diversified portfolio of about 10 stocks combining growth and high dividend companies. Make sure half of your portfolio is in companies generating profits in currencies other than the dollar. Always know why you are buying a piece of any business.

7) Invest in real estate. Invest in your dream home and in land if you love to spend time in the country.

Be blessed, and then be a blessing to others
Carlos Fontana
Carlos@pricelessbooksforlife.com

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