Investment companies: organization and financial activities. What knowledge does a novice investor need to achieve success in the financial market Essay topic of investing in yourself
Quotes from famous people about finance and investing.
There are many ways to learn important things. You can choose the difficult path and try to comprehend everything yourself, sometimes achieving success and sometimes facing failure. Another option is to learn from others. After all, many smart people before you have tried to achieve the same goals, such as financial well-being, and many of them have left useful advice for posterity.
Here are 10 quotes to help you better understand how you should handle money. It is even possible that with their help you will become rich.
1. Beware of minor expenses: a small leak will sink a big ship. ”- Benjamin Franklin.
This aphorism of Benjamin Franklin has a deeper meaning than it might seem at first glance.
First, it is obvious that everyday small expenses add up to a substantial sum. An extra cup of coffee for 100 rubles, which you drink every day in a cafe, will cost you almost 40 thousand a year. The habit of smoking a pack of cigarettes a day takes about the same amount.
Second, and less obvious, this rule also applies to the small fees you pay for exchange.
Suppose you invest $ 10,000 annually in two mutual fund, each of which shows an average annual growth of 10%. In one of them, the annual commission is 0.7%, and in the second - 1.7%. The first investment will bring you about 578 thousand dollars, and the second only 512 thousand dollars, that is, on the difference of 1% you will lose more than 60 thousand dollars.
2. “There is no dignity so impressive and independence as important as living within our means” - Calvin Coolidge.
It is important to realize that you should live within your means and not spend more than what you have. This means you don’t have to buy things that you really cannot afford, such as an overly posh car or a big screen TV, for which you will have to pay interest on a loan, since you cannot make such a purchase right away.
By purchasing them, you lose financial independence and financial stability, and do not approach them.
3. “I measure the value of a thing by the amount of vitality that must be given for it,” - Henry Thoreau.
This is a great reminder of how important it is to think about the value of things. If you earn about a million rubles a year and buy a car for half a million, does it bother you that you spent half of your annual salary on it? Is dinner at an expensive restaurant or a haircut worth three hours of your life? With the help of such simple calculations, you can avoid unnecessary expenses.
4. “Most people miss an opportunity because she’s wearing overalls and looks like work.” - Thomas Edison.
Edison's aphorism says that we are often attracted by the desire for quick money, whether it be winning the lottery or buying risky stocks that, we hope, will skyrocket in value. It is much better to choose less spectacular and longer paths to success: to save money carefully and invest it in reliable growing companies with a stable competitive advantage (such as a well-known brand or the ability to dictate its terms to suppliers), or simply invest in the stock market through an index fund.
5. “You can't buy a dime for a nickel anymore,” - Yogi Berra.
This quote speaks to the rise in inflation, which reduces our purchasing power... Consider inflation when planning your financial transactions.
6. “The stock market is full of people who know the price but have no idea about the value.” - Philip Fischer.
Fischer's quote is a great reminder that the stock price (or property price) doesn't really matter. Buying overvalued shares or an apartment will end up causing you a loss or, at best, a small resale profit.
In financial affairs, you need to look for what has the maximum value: buy stocks when the price for them is below what they really are; the same applies to regular purchases in stores, look for products with promotions and discounts. This has now become much easier thanks to the many apps that allow you to compare prices and find the best deals.
7. "If you can hardly imagine losing 20% \u200b\u200bin the stock market, you shouldn't invest in stocks" - John Bogle.
The investor must have a certain mindset. You should be prepared for the fact that stocks will sometimes plummet in value and patiently wait out these periods of failure, perhaps sometimes even buying even more of the same stock at lower prices if you are confident in them.
Also, be prepared to lose money on some bad investments. This is also part of an investor's life, although the more you learn from your mistakes, the less you will make them in the future.
8. “Know what you own and know why you own it” - Peter Lynch.
If you're an investor, don't buy stocks just because someone suggested them to you, or because they perform well, such as a low price-to-earnings (P / E) ratio or high profitability. You need to learn a lot about the company and how it makes money.
In addition, you need a good reason why you are investing in these stocks: for example, you expect that the company will double its profits in the next five years, because it is a leader in its field and has significant advantages that will not allow competitors to get around it.
9. "When buying a stake in a business, ask yourself, would you like to buy it in its entirety?" - Rene Rivkin.
This aphorism complements the previous one. If you buy shares in a company, this should mean that you would like to own it entirely. Of course, few of us can shell out $ 50 billion or even $ 500 million for a company. But ask yourself a question: if you had this money, would you like to make such a purchase? This will help you understand if you consider your investment as a risky bet or as a serious long-term investment.
10. “The best investment is investment in knowledge.” - Benjamin Franklin.
Finally, remember that investments are different. If you deposit money in a bank account or purchase a certificate of deposit, you will receive income in the form of interest, but you can also invest profitably in something else, such as yourself. If you read a bunch of books about investing, you will most likely become a much more sophisticated investor than before, and will likely be making profitable investments, not losing ones.
Invest in your career - acquire additional education and receive certificates that testify to your high professional level. This will help you move forward and make more money, which in turn will lead to better financial performance.
Warren Buffett's partner Charlie Munger assures that reading books on psychology and history, as well as books-biographies of famous people, will help you not only invest better, but also better think and make decisions, and also make you a better businessman, leader and just person.
These are golden words - and they will help you get rich.
Charlie Munger - Vice President of Warren Buffett's Berkshire Hathaway Corporation - once said:
Warren Buffett has become a much better investor since the day I met him. Same as me. The secret of this is that you need to learn 24/7, and not think that success will come by itself.
Warren Buffett has appeared on the pages of Lifehacker more than once. This elderly and fantastically wealthy investor knows how to speak in phrases that you want to remember. The desire to listen to Buffett's advice, as extravagant as it may be, doesn't strike us as odd. After all, one of the richest people on the planet cannot advise anything bad.
If you do not find fault with the words, we can say that it is so. Buffett's advice, which does not relate to investing and finance, is simple and practical. It is difficult to argue with them, since everything that he says is already known to you, but from the mouth of this person everything sounds more significant.
The most valuable asset you have is yourself. Anything that improves your talents and skills is worth doing.
Warren Buffett
This raises the question: how to invest in yourself? There are many ways to do this, and we decided to concentrate not only on those that lie on the surface, but also on those that, at first glance, do not seem obvious.
1. Create a curriculum
For a long time, I have been using the app to complete my daily plan. On my daily list was meditation, half an hour of lectures on Coursera, writing something new in a notebook and reading. Of course, I knew my routine by heart, but the application forced me to act even when I didn't want to.
Creating a curriculum is the first thing to do. Decide what skills you want to develop, how to do it best, and how much time you need to set aside each day.
2. Surround yourself with smarter, more successful people
Because of this, you will sometimes feel bad, because we are always uncomfortable when someone from our inner circle has achieved more than we ourselves. It will pay off in the long run. The experience of other people will provide an opportunity to develop even when you seem to be just chatting.
3. Improve your communication skills
You can learn something new from three sources: your own experience, working with information and the experience of other people. Accordingly, in order to talk with successful people and learn from their experience, you need to offer something in return.
At the very least, these should be good skills. The interlocutor should be pleasant to communicate with you. Your profession is not important - any person should be able to communicate competently and in an interesting way.
4. Don't be afraid to spend money
Recently, people's reluctance to invest in their own education has begun to wane. We increasingly understand the importance of courses, workshops and travel that can improve professional skills. Buffett, for example, advises investing 10% of your income in your own education. What it will be: courses, books or business trips - you decide.
5. Develop not only professionally
I know it's not easy to do this when work takes up most of the day. But here's a little secret:
Once you discover an activity that you find interesting, you can magically find time for it every day.
You may need to sleep an hour less. Maybe skip your lunch break and leave early. But if you find what you like, time will appear, even if it was not there before.
Hello readers. I promised to change the concept of the blog and one of the changes was that now I will try to publish posts every day. Of course, I can say with complete openness that this may easily not work out, but I promise everyone will do their best to keep this promise.
As the theme and concept of the blog has changed, I am writing this post with a different mindset and enthusiasm.
As the title says, the best investment is investment in knowledge. I believe that this is one of those investments that you will never consider not successful, unnecessary, a waste of money or anything else. Today we will focus on books, those books that I have read recently and which have had a great impact on me. Let us recall the old saying: "He who reads a lot, he knows a lot." It would be foolish to disagree with this.
As part of my new topic on business and happiness, I provide books that I have read in the near future and that every businessman should read.
Delivering happiness. From zero to billion. First-hand history of an outstanding company
It was this book that became the basis for why I renamed the blog, I do not want to write mediocre texts anymore and I do not want to do something that does not give me happiness. Neither me nor my readers.
This book is the story of the famous zappos.com company. Zappos is an online store selling clothes, shoes, accessories and happiness. You might think that I am a little strange, but after reading this book, you will, like me, say the word "happiness" more and more often.
An insanely interesting, entertaining book about how Zappos was built on bringing happiness to everyone with whom it came into contact.
Who is this book for: for businessmen, entrepreneurs, those who are somehow connected with business on the Internet. And of course, for everyone who wants to know a little more about happiness.
Points of contact
Do you know Igor Mann? Perhaps not, perhaps yes. This is a person who tries to promote customer focus in every business he advises.
In simple terms, the main projects and books that Igor Mann wrote are aimed at the fact that business is based on relationships with clients. A warm, understanding and mutually beneficial relationship.
Points of Contact is a book for businessmen who want to improve their business without investment. Easy, simple, understandable ways that really give an effect. Stop wasting your bucks on advertising, marketing and other nonsense. Every business works with people - that's where you need to start improving your business.
Business and Life. The truth that is not spoken of. Business and Life. Secret files
Cool, funny book that reads in one breath.
In general, a wedge in a cheerful tone, interesting words, stories, and generally recommend it to everyone. Gives good advice and entertains at the same time, that is, it brings happiness, and people need it. Check it out for yourself.
Steve Jobs (Walter Isaacson)
There is even nothing to say. Super book, super personality, super author, always relevant. The entire biography of Steve Jobs in one bottle, even the pictures are cool. What he was, what he became. An excellent biography, in order to understand the values \u200b\u200bof life for yourself and start doing something.
By the way, Steve was one of the Happiness movement. His goal was to bring happiness to people. What could be better.
The monk who sold his Ferrari. The story of the fulfillment of desires and comprehension of fate
Mega cool book, mega many emotions, few words to express how happy I am that I have acquired this book.
The book is about the fact that human thoughts and words are material. The book is about the beginning of the beginnings. A book that no one will forget after reading it.
Few words, many emotions. I want to tell you a lot about it, but it's better to read it.
One of my blog commentators, as if reading my thoughts, asked about those books that had a direct impact on my vision of life. I indicated them. This is only a small part, but these are the most. Plus, this will be enough to get you started reading.
This concludes my post. I decided to introduce into the tradition at the end of each post to give happiness, the statement of one of the greatest people. And don't be afraid to spend money on knowledge - these are the best investments with a future perspective.
« A man is what he thinks about during the day» Emerson.
The rich pay for financial literacy; the poor pay for financial illiteracy.
If you want to be rich, you need to be financially literate.
Robert Kiyosaki
Investing in knowledge always yields the greatest returns.
Benjamin Franklin
Your well-being depends on your own decisions.
John Rockefeller
Those who are unwilling to take responsibility for their financial lives right now face a bleak existence in the future.
Robert Kiyosaki
The size of the state is determined not by the amount of income, but by habits and lifestyle.
Mark Tullius Cicero
Where capital prevails, industriousness prevails, where income prevails, idleness prevails.
It doesn't matter what car you drive, what clothes you wear, and what restaurant you dine in. Show your financial statement. He will tell you much more about you than an expensive car bought on credit!
Kirill Kirillov, Dmitry Oberderfer
Too many people are now spending money they didn't earn on things they don't need to impress people they don't like.
Jack Kerouac
Wealth and income are two different things. If you earn a lot and at the same time spend everything you get, you are not getting rich, but simply living widely. Wealth is what you accumulate, not spend.
Thomas Stanley, William Danko
If you want to be rich, learn not only to make money, but also to be economical.
Benjamin Franklin
Wealth is not generated by the money you make, but by the money you save.
Bodo Schaeffer
Capital increases as a result of frugality and decreases as a result of extravagance and indiscretion.
Save on anything that doesn't generate income.
Money is the means by which earthly success is measured.
George S. Clayson
Money is the main thing in life, and this axiom should be laid in the foundation of any healthy morality, both personal and national.
Bernard Show
When I was young, I thought that money was the main thing in life. Now I am old, and I know that it is.
Oscar Wilde
Take care of your money, and they, in turn, will take care of you.
Robert Kiyosaki
Berthold Averbach
The most important words in business are cash flow. Rich people are rich because they control the flow of money, and poor people are poor because they cannot do it. Most financial problems stem from a lack of personal control over cash flow.
Robert Kiyosaki
Thinking about your money one day a month is more important than earning it for thirty days.
John Rockefeller
What distinguishes poor people from rich people is not their income, but how they manage their money. How much money they have left and how much new money they already have.
The poor and middle class work for money. The rich make money work for themselves.
Robert Kiyosaki
Don't say you're working. Show what you earned.
Thomas Robert Dewar
If you don't know how to make money for yourself, you will work for another person all your life.
You have to work to make a living. But to get rich, you have to come up with something else.
Alphonse Carr
The best job is a high-paying hobby.
Henry Ford
Find a job to your liking, and you will not have to work a single day in your life.
Confucius
Do today what others do not want - tomorrow you will live in a way that others cannot.
Jared Leto
Don't chase money - go meet them.
Aristotle Onassis
Almost the only way to make really big money is to start your own business. You will never get much by working for someone. Find "your niche", release a product that people need, but which they can not buy or get it with great difficulty.
Paul Getty
The purpose of money is not idleness, but the multiplication of means for useful service.
Henry Ford
My money's job is to work hard for me, acquiring more and more assets.
Robert Kiyosaki
No matter how hard you work, your money can work so much better for you if you invest it right.
Robert Shemin
Better to have your money work for you than you will always work for money.
Adam Jackson
Make a decision: do you want to create a mechanism that makes money for you, or remain in the role of this mechanism all your life?
Bodo Schaefer
It was not money that made me rich, but investing time and investing money when I had very little money.
Robert Kiyosaki
Investment objectives are cash flow, capital gains, depreciation and tax-free profits.
Robert Kiyosaki
I made my first investment when I was eleven years old. Before that, I was just a playboy.
Many middle-class people think that saving money, retirement plan and their home are smart financial decisions. For all their importance to financial well-being, they will not provide wealth. You need to buy or create assets that generate passive income.
Robert Kiyosaki
There are three types of assets: business, real estate, and securities.
Robert Kiyosaki
Today I am rich precisely because of what I did in my free time.
Robert Kiyosaki
The most valuable asset is time. Most people cannot use it correctly. They work hard to make the rich richer, but they don't make the effort to make themselves rich.
Robert Kiyosaki
Most people overestimate what they can do in a year and underestimate what they can do in ten years.
Jim Rohn
If you want to have money, do not waste your time.
Benjamin Franklin
When people have money, they want to spend it with pleasure and benefit. As practice shows, investing in yourself is the most profitable way to invest. Every person needs such investments, regardless of age and financial situation.
Before, I didn't know what it was like to invest in yourself. In our country, it was customary to work for the good of society, and taking care of yourself was considered something shameful. But times have changed. Now I understand how important it is to work for yourself, your development, your pleasures, and not postpone life until later. Today we will consider several options for investing in our own personality.
What does it mean to invest in yourself
When we talk about investments, we mean, first of all, financial investments. In fact, investing in your inner world is equally important. Each person is characterized by the desire to develop, strive to achieve the goal.
Investments in your development are reading books, playing sports, training, meditation. Even when you just communicate with interesting people, we are spiritually enriched. All these investments work for us, for our future. The dividends from such investments will be much higher than you might imagine.
What do we usually invest
First of all, let's figure out what we can and are ready to invest. First of all, we invest the following resources in ourselves:
- Money. Almost all valuable things are worth something, and you have to earn money on them.
- Time. Of course, we spend most of the day doing some kind of duties. This is both service and household chores: washing, cleaning. But you need to devote time to more enjoyable things. You can always find a free moment to read a book, watch a new movie and even attend a culinary master class.
- Skills and knowledge. Throughout life, we are constantly learning something new. Knowledge helps us not only to earn money, but also to relax, and also to monitor our health.
People's priorities can also change. Earlier, great importance was attached to obtaining a diploma. It was the crusts themselves that were highly valued, although knowledge was not always applied to them.
Now gaining knowledge and acquiring skills comes first. If we invest money in knowledge, it allows us to improve our lives. You can even change your occupation, for example, start working remotely and live in a more comfortable mode.
There are many ways to invest in knowledge. For example, four years of study at a university will cost about 150,000 rubles. The same amount can be spent on taking intensive courses for IT specialists. In the second case, we have an important advantage. It will be possible to find a good job, which means to receive dividends on the deposit, much faster.
I agree with people who say that there is no limit to perfection. If you think that you lack some knowledge, you should definitely use the opportunity to get it.
Investments in your health
Agree that without health we just nowhere. When something hurts or worries, neither money nor knowledge pleases. Health needs to be monitored, besides, timely prevention is cheaper than fighting sores.
Of course, investing in health isn't just about buying pills from the pharmacy. To maintain it, we need a lot:
- Eat well and on time.
- Don't ignore dentists.
- Make friends with exercise.
- Have sex regularly.
- Try to get rid of bad habits.
- Undergo a comprehensive examination at least once every 5 years.
- Avoid stress and overwork.
If possible, I advise you to buy a VHI policy. Due to the variety of programs, you can find an inexpensive option, and quality medical care means a lot.
Investing in your own appearance
Taking care of yourself and your appearance is no less profitable than, for example, investing in cryptocurrency or other assets. Of course, they are seen off according to their minds, but they are met exactly by their clothes. Girls who try to look perfect in order to successfully get married do quite reasonable. But for men, a presentable appearance will not hurt. A successful person who wants to make a career and enjoy success with women cannot look bad, sloppy.
I can agree with the principle: to get something, you need to invest. To increase your status, investing in your health and appearance is a must.
You can verify this with simple examples. If we eat good quality, healthy food, we promote health and improve our appearance. The chances of getting a job with a healthy, handsome person are much higher.
When I buy a new fur coat, it not only keeps me warm in cold weather, but also improves my mood. Investments in high-quality shoes cannot be dispensed with, because boots made of the skin of a young oilcloth get wet, do not warm, and I can fall off with a cold. Investing in good cosmetics helps protect the skin from aging and allergies, and there are many such examples.
Investing in your appearance is not only buying beautiful clothes, jewelry and other things. A person needs to keep fit: go to the gym or work out at home, go to beauty salons.
It is not necessary to spend a lot of money on this, the main thing is the desire to be attractive. By the way, money is very fond of respectful attitude. In the wallet, they need to be folded neatly as they grow.
It is necessary to take care not only of external beauty, but also of your inner world. This is especially true for the female sex. A woman must maintain her inner purity, be free from anxiety and fear. Therefore, it is important to spend time, effort and money on things that help you relax: dancing, visiting a fitness center, consulting with a psychologist. A person who is not bothered by anything is cheerful, energetic and looks five-plus.
Contributing to your knowledge
Ideally, knowledge should bring not only income, but also pleasure. A person receives some knowledge from nature, from his parents, others acquire in the process of life. In order for them to justify themselves, it is advisable to strive for them constantly.
There are many ways to learn new things both for free and for a decent price. I can name the following methods as the most effective:
- Master classes on a specific topic. It is not the cheapest pleasure, but you can quickly learn something interesting in a small group.
- Trainings. They are held with the involvement of experts in any field and therefore are very informative.
- Courses, especially language or computer courses.
- Travels. This is perhaps the most enjoyable way to spend money and improve yourself.
All these things will have to be spent. If you have nothing to invest yet, stop at the free options. These can be clubs of interest, video tutorials for everyone, distance learning. By the way, hobby clubs where people can teach each other something are very popular in Europe.
When a person invests in his own knowledge, he increases his value in the labor market. To increase your income, you will have to improve professionally. If you start to engage in your own development for at least an hour a day, you can quickly overtake colleagues and become recognized specialists in your field.
Connect with successful people
Social circle influences our life very strongly. It is believed that if we communicate with positive people who have achieved a certain degree of success, then we ourselves are charged with positive. Positive energy emanates from them, they are cheerful, sociable and willingly make contact. When such a person is around, we also want to achieve something. So this is a great incentive to change for the better.
For example, the rich and famous may dress and behave simply, but they mostly associate with people in their own circle. Just look at the legendary friendship between Bill Gates and Mark Zuckerberg. Since any investment should pay off, try to be surrounded by those who can be a positive example for you. Maybe over time you yourself will become an example to follow.
A successful person is not someone who never gets into trouble. But he tries to overcome adversity or simply steps over them. People who are offended by life and constantly complain, on the contrary, pull us down. When a person succeeds, they do not rejoice, but begin to envy him. If you fall under their influence, you can quickly become pessimistic and disillusioned with life. No one is born a loser; that's how we make ourselves.
Don't be afraid to pamper yourself
How often we are afraid to spend money, denying ourselves even the necessary. But don't put off your life until later. You can feel the value of money only when you spend it freely, with pleasure. Let your salary not allow yourself to be pleased with expensive purchases, but a soft toy or a beautiful cup will not ruin your budget.
Investing wisely in yourself plays a vital role in our lives. They help to enjoy it, plan expenses and spend money wisely. The investment methods that we have considered will definitely bring profit in the future.
Of course, my advice cannot be called ideal, because each of us knows our needs better. Set a goal and try to achieve it. Investing in yourself will be of great help to you.
You should always remember that investing in your own personality is not at all shameful, but pleasant and profitable. If we try to enjoy life, we will live longer, and most importantly, better.