We live in an impatient time, and when it comes to money, we want more today, not tomorrow. Whether it’s a mortgage deposit or cleaning up credit cards that deplete our energy after we stop enjoying what we buy with them, it’s just as good. When it comes to investing, we want easy options and quick returns. Thus, the existing mania for cryptocurrencies. Why invest in nanotechnology or machine learning when Ethereum is locked in an endless spiral of growth and is a gift that continues to give Bitcoin?
A century ago, the American writer George S Clason took a different approach. In the richest man in Babylon, he gave the world a treasure trove of financial principles based on what may seem outdated today: prudence, prudence, and wisdom. Clason used the wise men of ancient Babylon as his spokesman for his financial advice, but that advice is as relevant today as it was a century ago, when the Wall Street accident and the Great Depression approached.
Take, for example, the five laws of gold. Wherever you are in life, if you want to put your personal finances on a solid foundation, these are for you:
Law №1: Gold comes to anyone who invests at least one-tenth of their earnings with pleasure and increasing amount to create a property for the future of themselves and their families. In other words, save 10% of your income. Minimum. If possible, save more than that. And it’s not 10% for next year’s holiday or a new car. It is long-lasting. Your 10% may include pension contributions, ISAs, premium bonds, or any high-interest / limited entry savings account. Well, interest rates for depositors are now at a historic low, but who knows where they will be in five or ten years? Compound interest means that your savings will grow faster than you think.
Law №2: Gold works diligently and happily for a wise owner who finds him a lucrative job. So if you want to invest instead of saving, do it wisely. There are no cryptocurrencies or pyramid schemes. We focus on the words “profitable” and “employment”. Work your money for you, but remember that the best thing you can hope for for this side of the rainbow is not lottery winnings, but long-term fixed returns. In practice, this is most likely the shares of established companies that offer regular dividends and offer a steady upward trend in stock prices. You can invest directly or through a fund manager in the form of a single trust, but before you leave with a penny, see Laws 3, 4 and 5 …
Law №3: Gold clings to the care of its prudent owner who, on the advice of the wise men who rule it, puts it to bed. Talk to a qualified, experienced financial advisor before doing anything. If you don’t know one, do some research. Check them online. What experiences do they have? What kind of customers? Read the reviews. Call them first and feel what they can offer you, then decide if a face-to-face meeting will work. See their commission arrangements. Are they independent or affiliated with a particular company, on a contractual basis to push that company’s financial products? A decent financial advisor will encourage you to get the basics before investing in emerging markets and space travel: retirement, life insurance, a place to live. When you are happy to find a counselor you can trust, listen to them. Trust their advice. But regularly review your relationship with them, say it every year, and if you’re not happy, look elsewhere. Most likely, if your decision was sound in the first place, you will stay with the same consultant for many years.
Law №4: Gold moves away from investing in businesses or purposes that are not approved by those who do not know it or are experienced in keeping it. If you have in-depth knowledge of food retail, invest in a network of supermarkets that increase market share. Similarly, if you work for a company that has an employee shareholding scheme, it makes sense to take advantage of it if you are confident that your company has good prospects. However, you should not invest in any market or financial product that you never understand (remember Crash!) Or that you cannot fully explore. If you are interested in trying your hand at currency trading or option trading and have a financial advisor, talk to them first. If they are not speeding, ask them to direct you to someone who is there. It’s best to avoid anything you’re not sure about, no matter how great the potential revenue.
Law №5: Gold avoids a person who seeks impossible profits or who follows the attractive advice of swindlers and swindlers, or who relies on his own inexperience. Again, the fifth law comes after the fourth law. If you start researching the internet for financial advice and wealth creation ideas, and invest £ 999 in their “system” to turn £ 1 into £ 1XXXXXX, your inbox will soon be full of “scammers and swindlers” who promise you the world. Chicago Mercantile Exchange. Remember that the only person who makes money in a hurry is a shovel seller. Get the wrong shovel and you will soon be in debt. For a system that has no proven value, you won’t just pay through the nose; By doing so, you will probably lose more than you paid for it. At the very least, you should check the original reviews of the product. Never buy a system, investment vehicle or financial product from any company that is not registered with a national regulatory body, such as the UK Financial Conduct Authority.