Hey guys,
during the last 5 years I'm on my way to financial freedom. From day one I kept a journal about things I learned about money. I constantely try to educate myself about financial topics, investing and financial freedom. Everytime I read something noteable I wrote it in my journal. So far I noted 18 things that I wanted to always keep in mind. I'd like to share my list with you. Hope you enjoy it(I'm not native). If you have something to add, please write a comment!
1. Never spend more than you earn! Invest the difference between earnings and spending.
2. If you want to save, hide the amount as a cost by implementing a standing order to another account at the first day of the month.
3. Set specific financial goals. Write them down!
4. Never get into consumber debt! Be the one collecting interest, not the one paying it.
5. Never, never, never underestimate the power of compound interest.
6. Gold was, is, and will be a store of value. Bitcoin can turn out as a true alternative.
7. On Investing: Be patient and don't run after rising prices.
8. In most countries, investment income is taxed more friendly than if you work yourself. Plus: I don't have to be present to earn money.
9. The general interest/popularity of an asset class ist often an useful contraindicator which signals the end/top of a bull market.
10. Invest in companies where mangement holds a significant stake in the company. -> "Nobody polishes rented cars!"
11. Always hold 10-20% percent cash! This enables you to capitalize on great buying opportunities.
12. When investing, be a contrairian! "Be greedy when others are fearful and fearful when others are greedy"
13. Ressource markets are highly cyclical.
14. Invest in companies that have a business model that's easy to understand. Don't invest in companies where you don't understand the businedd model.
15. Time ist the most scarce ressource in the world.
16. A privately owned home is only an investment if you rent it.
17. On spending: Learn the difference between "needing" and "wanting".
18. It's hardly possible to reach financial freedom through you salary alone. Use compound interest to get there.