Have you heard of Warren Buffet’s first rule of investing? The rule states:
Rule 1: Don’t lose money.
Rule 2: Remember Rule 1.
It’s easy to say, and sometimes it can be very hard to apply. The following 5 Laws of Gold will make the safe managing your money easier.
Without further ado, here follow the rules.
The 5 Laws of Gold
- Gold will come to those who put aside no less than one-tenth of their income for the purpose of investing it in profitable activities. You must always have money put aside for investing purposes, because otherwise when an opportunity comes if you have no money, you won’t be able to take advantage of it.
- Gold multiplies if you put it to profitable use. This is gold’s natural behavior.
- Gold stays with the wise person, who seeks the advice of experts before investing. Stay cautious.
- Gold runs from people who invest in businesses they are not familiar with, or from people who don’t seek the advice of experts familiar with keeping and investing money.
- Gold runs from people who seek big, fast returns, or invest in alluring advice, which is too good to be true, or if from people who trust their own inexperience and romantic desires.
Be very skeptical with your investments. Be cautious. If people hear that you have money, they will quickly devise ways to take it from you. Dishonest people do not rest. Be wary of people who promise big, impossible returns.
Always have a trade and skills, so if you lose your money, you can get a job.
Be wary of people who invite you to invest in businesses they don’t understand. Take no chances of losing your principal. Seek the advice of experts.
Stay away from gambling. Unless you are the owner of the casino.
Wealth that is built quickly is lost quickly. Wealth stays with people who build it gradually, and through the use of their skills and knowledge.
If investing in the stock market, don’t time the market. If you are uncomfortable holding a company’s stock for the next 10 years, don’t even think about holding it even for a second.
Of course, these rules should be common sense. As with all common sense, though we know that it’s seldom common and few have it.
What are your 5 Rules of Gold? Let us know in the comments bellow.