Published On: Sun, Dec 17th, 2017

3 Investment Tactics Rich People Use All the Time (And You Can Too)

3 Investment Tactics Rich People Use All the Time (And You Can Too)

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Managing money is a universal concern and yet some people seem to get rich quick and others fall by the wayside. There is certainly a lot of luck involved in getting rich including being born into an already wealthy family (lucky), being able to get a really well paid job by being at the right place at the right time (really lucky) or picking the winning lottery numbers (super lucky!). However, there are also a few things that rich people tend to do that others don’t.

So, even if you don’t have a huge budget, here’s what you can learn from the way rich people manage their finances, and make yourself a bit luckier too.

They Invest and Save as a Habit

Sure, it’s easy for them because they already have the money to do this, but actually, you can save and invest too. You don’t need to save a lot or invest a lot each month and anywhere from a mere 5% to 15% of your earnings will be enough to see a difference without feeling pained.

Just as you set yourself a savings goal, set yourself an investment goal too. For example, you might decided upon a realistic number that you are going to invest each month and then find a suitable place for it to be invested. Whether you choose a long term investment like a house, or a shorter term option, keeping to your plan will boost your income systematically.

They Use Tools to Inform Them of the Best Investments

Yes, it’s obvious really, but the person with the most information can make the best decision. If you haven’t had much luck in your investments, or haven’t been brave enough to try investing yet, you will need the best advice and tools at your disposal.

The aim is to find a low risk, high return investment. This way you can maximise your chances that your money will return with a good increase. One of the best ways to find this sort of investment, is of course by using an app. There are lots of different styles of apps and some are more expensive than others so the best thing to do is look at a site like investormint.com for a more detailed understanding of what you need and what you can get.

They Have a Mixed Portfolio of Investments

The best thing you can do is to have a mixed portfolio of investments to ensure your financial health. This means that you don’t just invest in the low risk, high yield opportunities, but you mix up your portfolio to be more diverse. A diverse portfolio might include some stocks and shares, some low risk investments and even a house you are renting out for a monthly fee.

With every diversification of your portfolio, you protect yourself from the market a little more. So, if the housing market suddenly crashes, you will be able to fall back on stocks and shares. If the stock market crashes, your money is usually safest secured in bricks and mortar investments, which will gradually recover their value over time.

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