Preparing to Invest

What preparation do you need to start investing?

“The most important quality for an investor is temperament and not intellect.” Warren Buffet

Pay yourself first

  • Keep expenses low 
  • Build the Asset column first 
  • Don’t get into consumer debt in the first place
  • Personal Self-discipline 
  • Develop Management Skills
    1. Cashflow
    2. People
    3. Personal Time
  • When you come up short, let the pressure build
    • Avoid dipping into savings/Investments

Master a formula (Derivative trading, How to buy Real-Estate foreclosures..), then learn fast a new one. 


  • Money is made on information 
  • Choose knowledgeable Friends Carefully – the power of association
  • Purchase when it is not popular 
  • Surfer mindset – Patiently waiting in position for the next wave
  • Profits are made in the buying 
  • First question
    • How fast do you get your money back?
  • Indian Giver – Power of getting something for nothing
    1. Move money IN for a short period ( week/Month) while the stock moves up
    2. Pull the initial amount OUT
    3. Stop worrying about fluctuations
    4. Move the rest of the money to another asset 
  • Look at the assets you get for free once you get your money back 
  • Limit, Low risk 
  • Upside – “Something for free”
    • Stock shares, Mini-storage, Houses, Office Buildings, Pieces of free land

Compound interest is the eighth wonder of the world; he who understands earns it. he who doesn’t pays it – Albert Einstein

Pay your professionals well 

  • The services should make you money
  • Manage and reward people who are smarter than you in some technical area
  • Broker
    • Salesperson 
    • Eyes and ears in the market
    • Saves Time 
    • Find a broker who has your best interest at heart 
    • Provides valuable information 
  • Accountant – Interview: 
    •  Do they mind their own business? 
    • What percent of taxes do they pay?
    • Find how much property or stocks they personally have


An investment in knowledge pays the best interest – Benjamin Franklin


Inspired by RichDadPoorDad

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