9 Investing Rules for Beginners

How to make money from money

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Photo by Nathan Dumlao on Unsplash

1. Invest in Yourself First

2. Understand the Meaning of ‘Investment’

3. Understand the Difference between an Asset and a Liability

An asset is anything you buy which puts money into your pocket. A liability is anything you buy which takes money out of your pocket.

4. Never Invest more than Half of your Liquid Capital

5. Understand Risk is a Core Part of Investing

6. Diversify, to Begin with

“Diversification is protection against ignorance. It makes little sense if you know what you are doing.”
- Warren Buffett

7. Invest Before you Spend, not After

8. Start as Early as You can in Life

9. Understand the Power of Compound Interest

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The power of returns of compound interest vs simple interest. Image source: fool.com

How to get Started in Investing

Written by

Rajeet enjoys mixing cocktails and bombarding strangers with philosophy. (Aspiring) Polymath. London

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