After a lot of days i have taken up blogging again. It is better not to discuss the reasons behind it.lol. Anyways i am on holidays now and i have read a couple of books on investment coz i am really passionate about earning money. I am willing to share my thoughts regarding how i am going to proceed about it.
The first book i have read is "Rich dad poor dad"by Robert Kiyoski. It is actually a good book to start with. It is one of those few books which makes you wonder how foolish i would have been had i not read the book.
After reading the book i have made up my mind to invest and start yearning for financial education. The author says that successful entrepreneurs look for opportunities which the other people do not. One can do it only if they have the zeal for money every moment , they dont relax with what they have, but keep searching for opportunities every second.
In the investment world,people should not be influenced by emotions like greed,fear etc., I would like to brief u on that since that is really important. For eg., u see your stock growing in price,then your greed comes into picture. U ll imagine all the royalties u would have if you sell all the stock that u can purchase like a a BMW etc., and so u want the stock to further rise but all of a sudden the stock stumbles. Greed blinds u to the facts.The same happens with fear also. If u have fear u ll have all the negative thoughts and u act like a paranoid. U cannot watch your stock falling down. U ll get tensed and in that emotion u ll take a decision not based on your financial education.Warren buffet himself has said"Dont stay in investment business unless u can see your stock falling down by 50 percent" As a final gist of the para i ll put it this way"In an investment business one should make a sound decision based on their financial education and not by their emotions".
which takes us to the second part which is financial education. Every now and then i see ppl of middle age investing in stocks but have no idea about investing. So there would be no wonder if i see myself in the same position tomo where i want to invest in stock without financial education. I dont want that to happen and so utilize my time in improving financial education.
which brings us to the next question where do i start? In the book "Rich dad poor dad" the author says "I remind people that financial iq is made up of knowledge from four broad areas of expertise"
1)accounting-so learn all that u can learn about it. It is the ability to read and understand.
2)investing-science of money making. this is the creative side.
3)understanding market-check this out.It serves as an excellent example of supply and demand economics.
http://www.geocities.com/Hollywood/Hills/3090/Elmo/tickleme.htm
4)law-Rich people control everything but own nothing.The middle class first pays all the taxes to the Govt. and keep the remaining. You can manipulate the money in a smart way if u know the following.But this is only advised only if one has a sizable assets.Otherwise it is complex but if u can be patient it is interesting.
a)tax advantages.
b)protection from law.
The first book i have read is "Rich dad poor dad"by Robert Kiyoski. It is actually a good book to start with. It is one of those few books which makes you wonder how foolish i would have been had i not read the book.
After reading the book i have made up my mind to invest and start yearning for financial education. The author says that successful entrepreneurs look for opportunities which the other people do not. One can do it only if they have the zeal for money every moment , they dont relax with what they have, but keep searching for opportunities every second.
In the investment world,people should not be influenced by emotions like greed,fear etc., I would like to brief u on that since that is really important. For eg., u see your stock growing in price,then your greed comes into picture. U ll imagine all the royalties u would have if you sell all the stock that u can purchase like a a BMW etc., and so u want the stock to further rise but all of a sudden the stock stumbles. Greed blinds u to the facts.The same happens with fear also. If u have fear u ll have all the negative thoughts and u act like a paranoid. U cannot watch your stock falling down. U ll get tensed and in that emotion u ll take a decision not based on your financial education.Warren buffet himself has said"Dont stay in investment business unless u can see your stock falling down by 50 percent" As a final gist of the para i ll put it this way"In an investment business one should make a sound decision based on their financial education and not by their emotions".
which takes us to the second part which is financial education. Every now and then i see ppl of middle age investing in stocks but have no idea about investing. So there would be no wonder if i see myself in the same position tomo where i want to invest in stock without financial education. I dont want that to happen and so utilize my time in improving financial education.
which brings us to the next question where do i start? In the book "Rich dad poor dad" the author says "I remind people that financial iq is made up of knowledge from four broad areas of expertise"
1)accounting-so learn all that u can learn about it. It is the ability to read and understand.
2)investing-science of money making. this is the creative side.
3)understanding market-check this out.It serves as an excellent example of supply and demand economics.
http://www.geocities.com/Hollywood/Hills/3090/Elmo/tickleme.htm
4)law-Rich people control everything but own nothing.The middle class first pays all the taxes to the Govt. and keep the remaining. You can manipulate the money in a smart way if u know the following.But this is only advised only if one has a sizable assets.Otherwise it is complex but if u can be patient it is interesting.
a)tax advantages.
b)protection from law.
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