Should you pay off your debt or find a good investment first?
When people ask this question
normally they are stressed about how much debt they have and now little savings they have to cover that debt.
Plus all the advertisers tell you to get another credit card and call Merrill Lynch or some other
Your best & first way to invest is to pay off your debt.
Next comes actual investing. Since you have paid off your debt you have more to invest with than you would
have before. Which means compound interest will be a fantastic asset for you.
Albert Einstien once said The most powerful force in the universe is compound interest
Now that it is not working against you it can work for you. I am not a financial adviser. But I have
found some great tips, from credible sources for you to consider.
Most people wonder, "What should I invest in?"
It can be a scary proposition considering that you have worked hard for that money. You would rather be
happy with what you have than risk losing it. Or you don't want to jump at the first investment and miss a
great opportunity later. If this describes you at all, you may want to start small.
Also reading "The Millionaire Mind" I came across a couple of great tips.
- 1. Stock brokers are great sales people. If they are spending all their time selling it doesnt
leave them a lot of time to research stocks. In short, get advice from the experts. People who invest in a
lot of things, have made a lot of money and are financially independent. This may be a stock broker it may
not be the point is get advice from people who are where you want to be. They have done it, are willing to
share advice, often for free. And will not gain a percentage of your gains.
- 2. Diversify. Diversify means more than different types of stocks, although that applies to.
It may mean adding private stock, real estate, marketing your own products, etc. The options are huge. Be
creative and look for opportunities.
- 3. Do & invest in what you love. My daughter loves animals in general and specifically dogs. I
think since this has been going since birth it is officially not a phase. So we were talking to her the other
day about doing what you love. We asked her what she loves. Her immediate response was dogs.
We said great, how could you make money with dogs? She suggested a few things like playing with other
people's dogs, taking care of them, breeding them. I think as she gets older the list can be expanded to
veterinary services, dog care web site, etc. Basically she gave me things that she could do on her own.
Now those things can become investing when she starts her own company, advertises, employs others.
Eventually she can manage from the sidelines, and watch her income come in.
I personally like money and real estate. Pretty common. Restoring old homes, public and private stocks,
are things that interest me so I enjoy researching them.
The point is if you love something, and see a lack in the services provided for that something you have
found an opportunity to invest. You will be more knowledgeable about an investment and understand the risk
versus return potential.
- 4. Dont gamble. Millionaires will tell you they worked hard for their money and they are not
about to throw it away. This applies to Vegas as well as an investment. Most investments will require a
certain amount of risk. Thats OK. You simply need to decide how much risk you can afford.
If you need a guaranteed return, look for an investment that gives it. If you have a whim and have some
extra money that you are willing to lose because the potential is so good, go for it. Just educate yourself
to the risk before jumping into a decision that you may regret later because it was too risky or too safe.
A great investment or many investments are important for your financial future. Because it is so important
is you need to do a little research and be open minded to what investments will work for you.
This exciting new challenge will take some time but will be rewarding as you reach your financial and
ADD TO YOUR SOCIAL BOOKMARKS:
"A man in debt is so far a slave,"
Ralph Waldo Emerson.
- Millionaire Mind
- Millionaire Next Door
- Total Money Makeover
- First Things First
- Think and Grow Rich
- Rich Dad Poor Dad
- Cash Flow Quadrant
- Maigc of Thinking Big
- The Richest Man in Babylon
- 6 Thinking Hats
- How to Win friends and Influence People