How to start living on interest from capital (5 steps for novice investors)
Many people sincerely believe that it is impossible to become rich and always be "in the money". In this article, we'll talk about how to start investing your money so that it doesn't run out in a crisis.I sincerely believe that it is impossible to become rich and always be "in the money".In this article, we'll talk about how to start investing your money so that it starts to "work" for you.1) Stocks historically "outperform" inflation If you look at a long enough investment horizon, you can clearly see the fact that stock prices are growing at a faster pace (compared to the level of inflation).Therefore, in your investments, strictly adhere to the portfolio approach.Distribute your money in a disciplined manner across different financial instruments. Keep them in different currencies and different asset classes.2) the First investment is the most difficult This is probably the most important rule. for novice investors.It means that the more money you invest, the more uncertain an event horizon your investment presents you.The easiest way to create a large amount of capital is to start investing.To do this, start buying currency, stocks, and other financial instruments every month.This will allow you to gradually form an impressive capital, the income from which will fully provide you and your entire family.Moreover, you can start investing even when absolutely no one is looking!This is how you will be able to start creating your own capital — the income from which will be fully provide for you and your entire family.3) Avoid high risk with securitiesBecause of the high degree of integration of securities, derivatives, and other financial instruments, they are inherently risky.Moreover, you can lose them all at once! By engaging in speculative trading, you irrevocably become a co-owner of dozens and even hundreds of companies.It is high volatility that makes the stock market tick. Investors are used to being surprised by this, and they are very nervous.That is why high volatility is generally not recommended for newbies (after all, they are warned against it in the books).4) Investing on a monthly basis is the most cost effective way to investYour monthly averaging strategy will allow you to gradually form impressive capital, the income from which will fully provide you and your entire family.5) Ignore high returns for the sake of appearanceIt's not about what you need look like or what you need look like. it's about what you are willing to spend your money on.The fact is that in every investment there are high risks, including potential risks of losing your invested money. Therefore, do not make any sudden movements (at first look, in particular, at low quotes). It's better to stick to a daily averaging strategy.Executive SUMMARY:1. Please don't get distracted by high quotes. It's important