#1 - Never Stop Learning
I think investing is a lot like skiing. People tend to fall into large categories like beginners, intermediates, and experts based on their experience.
But all of us continually strive to get better, refine our technique, or learn how to use new equipment. When shaped skis came on the scene, all of us (experts included) had to adjust our techniques to get the most out of them.
The same can be said for investing and personal money management; the market is constantly going through cycles, and new tools are popping up almost every day.In order to protect your money and earn consistent returns (two keys to better investing), you must never stop learning.
#2 - Make mistakes and learn from them
Mr. Kiyosaki has said that the more you fail, the more you learn, and the more you learn, the more you earn. He therefore encourages entrepreneurs to fail. Not only that, he encourages them to fail early and often.
He says that by learning to fail quickly, you will spend less time failing and more time enjoying success.
When it comes to investing and money management, mistakes will usually result in losses. Which resulted in the 10th principle of Safe Investing: Learn from your mistakes (i.e. losses); you've already paid for them.
#3 - Always ask yourself, "How can I afford it?"
I hear a lot of people talk about things they want, but then follow up with the statement "But I can't afford it".
Just by uttering those words, you've made it 100 times harder to achieve the goal. We all know that you have to take action to achieve your goals. But now you've added an additional step of convincing yourself that your goals are possible.
Rather than wasting your time coming up with reasons you can't, spend your time wisely by figuring out how you can!
#4 - Surround yourself with supportive people who are like minded
Now that you're asking the right questions (see Money Management Tip #3), make sure that the people in your life are doing the same thing.
It is a bit of a cliche, but birds of a feather DO flock together and you ARE guilty by association.
So be guilty of associating with winners and soaring with eagles. Don't sit around with turkeys waiting for a windstorm.
#5 - Understand the differences between assets and liabilities
Remember:
Assets are things you own and INCREASE your net worth.
Liabilities are things you owe and DECREASE your net worth.
#6 - Mind your own business
You're already a business owner, but you may not know it. You. have all kinds of assets and liabilities; both physical and financial. And nothing is more important than how you run the business of "YOU".
Just like every business, you need to have a firm grasp of your finances if you're going to thrive. Are you using the right investing techniques and strategies for investing money? Are you seeing consistent returns?
#7 - Learn the vocabulary of investing and finance
Expanding your vocabulary doesn't end in 5th grade...it goes hand-in-hand with "never stop learning". Knowing the language of investing will make it much easier for you to talk about money.
You'll gain confidence and be able to clearly explain exactly what you want when you ask someone about investing, finance, and money.
#8 - Follow One Path Until Successful
As Napoleon Hill pointed out in the book "Think and Grow Rich", failure and defeat are nothing more than a flaw in planning.
Don't try to guess what other people or the markets will or won’t do. Create your plan and then work that plan until you're successful.
If you want to try income investing, try income investing. But don't try to shortcut the learning process and add growth investing and speculation to the mix.
When things don't go according to plan, "fix the glitch" and try again.
#9 - Teach Others
One of the best ways to master anything is to teach other people. When you think you've mastered money management, see if you can guide someone else through the process.
You'll not only help other people succeed, but you'll also learn more valuable lessons (see money management tip #1)!
