I have no debts, I have decided that it was time for me to finally embark on this famous investment adventure. Because casually, it is this final step that will allow me to achieve my financial freedom .
In this article, I will share with you the 5 steps to follow to learn how to invest serenely.
1. 1ST STEP: THE STATE OF MIND TO ACQUIRE
When you want to get into investing, you will first have to forge a foolproof steel mind. We must therefore already prepare ourselves psychologically for the fact that our career as an investor will be strewn with pitfalls. It should always be kept in mind that investing in miracle products simply does not exist and that it will take a lot of work to find profitable investments.
To acquire this state of mind, you will also have to avoid hanging out with “negative people” who will pollute your positive mind. Unfortunately, there are a lot of negative people out there who will tell you not to invest by telling you, for example, ready-made phrases like these:
- Do not invest in rental real estate, you will come across tenants who do not pay you the rent!
- Don’t invest in rental property, tenants will ransack your apartment,
- Do not invest in rental real estate, you will never be able to find a property whose rents are higher than your mortgage,
- Stock market investment is reserved for trading experts,
- Don’t create an online business, it’s impossible to make money online,
- Be careful, do not create your own business, it is very risky!
2. 2ND STEP: HAVE A HEALTHY FINANCIAL SITUATION
I see a lot of newbies getting into investing when they have a dire financial situation (overdraft, consumer credit, financial liabilities). In short, before investing, you must have a healthy financial situation, that is to say:
- Never be exposed,
- Save money every month (and therefore live below your means),
- Not having consumer credit,,
- Build up investment savings of at least 10,000 Dollars.
3. 3RD STEP: TRAIN
There again, too many people improvise as investors before even learning about the subject. Whether you are investing in real estate, investing in the stock market, launching an online business or embarking on an entrepreneurial adventure, you absolutely must train yourself.
When I talk about training you, it may be, among other things:
- buy a book on real estate investment, the stock market or online business creation,
- invest in online trainings of people who have achieved a goal with the investment,
- attend seminars that deal with investing,
- join Facebook groups of investors in your area and learn new things from them,
4. STEP 4: TAKE ACTION
Taking action is the most important. If you spend your time training yourself to always learn more about the type of investment you want to make, you will never take action: this is what I call disguised procrastination.
At some point, you’re going to have to get started. Because, in any case, whatever the level of knowledge you will have acquired by training, you will always learn more by TAKING ACTION.
Too many people spend years and years training without ever taking action. Why? Because it’s human nature: man is programmed not to step out of the crowd and not to step out of his comfort zone. Moreover, we all have in us the reflex of FEAR which prevents us from taking action.
5. 5TH STEP: MANAGE THE RISK
I explained to you in the previous step the fact that the man was afraid to stand out from the crowd and therefore not to do like everyone else. The fact of embarking on the investment causes a feeling of fear.
5.1 MANAGING REAL ESTATE RISK
A person who has never invested in real estate will be afraid to invest 100,000 or even 200,000 euros in real estate by taking out a mortgage for 10, 15 or 20 years. It’s a normal feeling. But to reduce this feeling, you just have to manage the risk!
If you are not comfortable with a first purchase of 200,000 euros, you may be more comfortable with a parking space at 10,000 or 15,000 euros. And you will learn how to invest in real estate while remaining serene. Indeed, whether you buy a parking space or a building at 500,000 euros, the buying process remains the same:
- You make an offer to purchase to the seller,
- You go to the notary to sign a sales agreement (or promise of sale),
- You make a mortgage at the bank (or not if you bought cash),
- You go back to the notary to sign the authentic deed,
- And you rent out the property by posting an ad on the internet.
5.2 MANAGING STOCK MARKET RISK
98% of newbie investors are afraid of the stock market. Here again, we are once again in touch with this famous feeling which is quite natural for man, namely FEAR.
But by managing the risk, we will be able to cancel out our fear. Indeed, before going on the stock market, we trained a minimum and we know that to invest in the stock market, you have to invest money WHICH YOU DO NOT NEED TO LIVE!
Starting from this principle, everything becomes simpler and stock market investment becomes much more secure since we are going to invest money that we are ready to lose.
The stock market is neither more nor less than a market place in which one buys and sells transferable securities. To simplify things, it should be considered that these transferable securities are:
- Either fractions of private companies: these are the Shares,
- Either fractions of company debts (or state debts): these are the Bonds.
For traders, there are ultimately only 2 strategies for investing in the stock market:
- stock market speculation,
- Investing in dividend stocks (or bond coupons)
Stock market speculation consists in buying a share at the lowest level to sell it at the highest level in a very short period of time. And the dividend strategy consists of buying shares of very large companies which will deliver a part of their profit each year to their shareholders: these profits are the DIVIDENDS.
5.3 MANAGING RISK BY CREATING YOUR ONLINE BUSINESS
So there, for once, there is no risk. Why? Because investing in an online business requires almost no start-up capital. However, it will take a lot of time. Indeed, you will need time to:
- Create and enrich your blog by publishing articles regularly,
- Regularly produce and publish videos on your YouTube channel,
- Create a real community around you by using, for example, social networks,
- Create solutions to your audience’s problems in the form of online training, workshops, or seminars,
- sell your training to your audience by writing sales pages,
- etc….
So the only risk you take with creating an online business is that of wasting a little time if your business will never generate income. But the big advantage is that you can start creating an online business today while being employed! And once you are able to generate income online, you can implement several web marketing strategies to increase your online income to double your salary!
6. CLOSING
Well, I hope you enjoyed this article. As you can see, in my eyes the 4 investment pillars are:
- real estate,
- the stock market,
- Internet,
- and business creation.
