Where do investments begin?25 сентября, 2021 от fake Выкл
«Where does the homeland begins? From pictures in your letter. «
(c) M. Matusovsky.
Most recently, readers with readers that investments are not entertainment, for those who suffer from boredom, the rich, how are some of our compatriots imagine. Quite the opposite.
Investments are your creative work, your investments in the future of your family, your children and your own. Financial security and financial well-being of your, your children and (with a certain share of good luck) future generations of your family.
The cinema inspires people that an investor, this is necessarily the rich (and rather even — over-rich) necessarily sitting on his own yacht, as a kind of «Wolf Wall Street», a lifting major bills to the right and left. But this image is as far from reality, as a real policeman, filling with whole days of pile of papers, are far from the cinema robocop.
In fact, as many people know, investing the occupation is quite serious, long, painstaking and boring, sometimes — not more fun than to observe how the paint dries, according to the gentleman of the sex of Samuelson (and the person who received the Nobel Prize in the economy, rather Total knew something about money).
But this serious work must be engaged with the same routine perseverance and constancy as cleaning teeth. Day after day and year after year. Unless lucky to be born with a silver spoon in the mouth))
However, even in countries where the culture of investment has many years of tradition, not everyone manages to start their way to financial independence. And what to talk about our homeland, where on the question «What is investments» from ten adult people will not be able to answer.
In many articles, we disassembled the investment process itself — the choice of financial instruments, the choice of broker and other nuances.
Let’s go back to step back. Judging by the letters in a personal readers have questions of a completely different kind — on how to start investing «in principle.»
How to start???
Where to begin?
These are sound questions, so let’s deal with them together.
Today’s article — about all that it is worth making a person even before you start investing (much of it should not be terminated and starting to invest, rented in brackets)))
We have repeatedly come to the conclusion — for a reasonable person, the securities market is not the place where money is earned. This is a place where money is saved and multiplied. He does not turn the stock exchange in the casino. And it means that your money in the securities market is maintained and multiplied, you should bring them there.
So — the first task of a person who wants to start investing —
Invest borrowed funds are a gambling. As they say, this is «not our method.» To the heights of well-being on a long temporary segment, this path does not accurately. So this topic will immediately close in the words of Vladimir Semenovich «
Once the first task for the future investor —
Just believe me — the person is inclined to underestimate its capabilities on long periods of time — this is an amazing property of the human psyche. Apparently, it is difficult for us to look «for the horizon» and we tend to live one day. Making savings is important to force themselves to overcome this natural human weakness and pessimism.
Even small amounts that you will regularly postpone over time will grow into a meaningful for you. And the very presence of capital will motivate you to increase it.
An important aspect that should be taken into account at the beginning of the creation of savings —
What to do with loans?
There are two different approaches to the creation of savings in the presence of loans —
First, quench loans, then create savings.
Gasim loans and in parallel creating savings.
George Cleison in the wonderful book «The richest man in Babylon» cites an example of a modern family, which extinguishes debts and parallel to savings (having drawn this wisdom in ancient, of course))). On this system, the debtor immediately not only begins to get out of the financial abyss, but at the same time begins to build the building of his future financial prosperity. It very much supports psychologically and inspires to earn more.
Wonderful, inspirational system, but it has one substantial minus for Russians — we have too «expensive» debts. With the interest rates that we have, in my opinion, it looks more logical to focus all efforts on repaying loans and only after that make savings for investing (I’m not talking about the «financial pillow of security» in case of income loss, which, of course Must have any man burdened with loans, it is about investment savings).
Of course, everyone has the right to decide himself, as he is psychologically more comfortable to start investment. Perhaps someone is unbearable to postpone the beginning of investments for years — which will be required to repay the mortgage. I just note that the historical profitability of our securities market was in the area of 15% per annum. If in the future the yield of Russian shares will decrease — and many experts predict, then the debtor is much easier and safer will close the mortgage arrears at a rate of 10% per annum than to try to invest, and risk, earning about the same yield on the securities market.
Excellent, with the first question figured out — our future investor began to make savings.
Next, it is necessary to determine its investment goals and understand whether these savings are enough.
You rightly mark — it seems to be two questions. This is true. They will have to solve in combination.
The budget is always limited.
And the company.
And from the state.
You will laugh — but even uncontrollably print bucks. United States of America — and those are forced to fit into some frames.
So you first can be outlined by «Funny Plans.» And then you will still have to bring them into some kind of compliance with the possibilities. Naturally, given that opportunities will grow — you will not stand still.
Let’s look at the examples.
There is a young family. Which would like:
Well, and then the family began to consider how much money needs to implement these Napoleonic plans and compare with their real incomes and realistic prospects. I realized that it was necessary to postpone about three hundred three hundred and a month and began to postpone right today — and it became clear that the plans would have to be corrected a little. And gradually the family came to the fact that, probably, taking into account the perfectly earning husband of a programmer, will be wonderful if they can save on average fifty thousand a month now and a hundred years after the release of the spouse from the decree. This is the name of the secularization of the budget))
However, no plans are lined with united sequesting.
Take another example — another family. The income is about forty thousand a month, which is hard to grab the family to reduce the ends meet. If they continue to «reduce ends with the ends» — nothing will change. A rolling stone gathers no moss. And postpone the tenth of forty thousand — better, of course, than not to have any savings, but it is necessary to solve the main problem. And the main problem is the lack of income. Without deciding this problem — there will be no investment in real way.
In the second example — you need to increase income.
Third example. Family with high incomes. Let it be a million rubles per month. At the same time, expenses are growing with a leading pace. This is another extreme — the presence of excellent income in the family, but the lack of skill or habits for savings and investment. It is obvious that such a family an increase in income will not help make savings. As they descended the whole million per month, with the same enthusias and ease they will appear and two and three.
In the third example — only the establishment of expenses control can help them start saving and create capital.
That is what we see?
But — excellent control will not create wealth from nowhere. If there are no cash flows — they must be created.
Summing up the interim outcome — at this stage, the future investor needs, determining its investment purposes, to mobilize its resources. Maximize earnings — if possible. And minimize capital leak, if it happens.
Let’s go back to the topic.
What do we get? We overcame several preparatory steps towards investment.
At first —
Yes, only now — when capital began to slowly accumulate — go to the last, fourth, item. Last But Not Least, as the British would say))
When our future investor began to accumulate the money, which he is going to invent the time — it’s time to start accumulating and