Investing is about making money on your money, usually excruciatingly slowly. It is about, instead of spending all your money or taking out loans, buying an asset that will be worth more in the future.
This is a tough one because I provide investment advice and don’t want to seem hypocritical.
Your investment plan is about your goals and the risk you’ll need to take to earn a return on your money. The problem with following investment advice is that it doesn’t take into account if the advice fits with your plan.
Once you have an investment plan based on your needs, it becomes pretty easy to sort through all the stock advice because it’s clearer whether the investment is right for you. You’ll trade in and out of stocks less frequently and save a ton of money in fees.
Diversification is your number one tool in meeting your investment goals. It’s one of the most talked about ideas in investing but few investors actually do it correctly.