Many people ask, when is the right time to start investing? The answer is as soon as possible when you already have your own income. No matter how much the amount, you can start to invest as early as possible.
According to businesstoday, investing is a technique of building wealth, but it’s not only for the wealthy. Anyone can start investing, and various flexible vehicles make it easy to begin with small amounts, and building a portfolio eventually
If you are still hesitant to start investing, check out 5 Warren Buffett quotes about investment:
“Price is what you pay. Value is what you get. “
In other words, don’t just be smitten with huge profits instantly. You have to know what risks you will get when investing. Don’t forget, focus on the basic values of the investment you make.
Additionally, you have to ask yourself whether you are investing just to make a big profit or you want to help SMEs grow through your funding? All of the choices is yours.
“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ. “
Investing is not a matter of who is the best at making profits. Investments certainly have certain goals. As an investor, you must know what your investment goals.
For example, you start investing to collect the cost of children’s education, wedding expenses, and so on.
“Risk comes from not knowing what you are doing.”
Many investors are trying to invest because they are following the trend. As a result, they allocate funds for something they don’t know deeply. However, there is much news about being deceived online investment or bulging investment circulated.
As a wise investor, you have to learn first about the investment instruments you want to try.
For example, if you want to try Peer-to-Peer Lending investment, you have to learn how P2P Lending works, how the benefits are generated, whether the platform has been overseen by the FSA or not, and so on.
“Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1 “
This rule is one of the principles held by Warren Buffett that can also be your next grip. Never lose money is closely related to the benefits gained when investing. As you know, investment certainly has risks, whatever the instrument are.
Therefore, you must be smart to rack your brain, how to keep your money intact, even multiply. For example, suppose you diversify your funds into various types of investments.
“Don’t save what is left after spending; instead of spending what is left after saving. “
Warren Buffett’s quote about this investment is closely related to the allocation of monthly income. The current formula is 50:30:20 method, in which 50% of salary is allocated for primary needs, 30% for secondary needs, and 20% for savings and investment.
Currently, for 20%, Warren Buffett suggests that you save your money first before use. However, if you wait for the remaining money from your monthly salary, it could be less than 20% or you become inconsistent when saving or investing.
Well, that’s 5 Warren Buffett quotes about investing. Which quote is the most relevant to you? Let’s put your comment below.
Writer: Fenda Agustina
Read more: What are The Benefits of Investing?