Move 3: Steps to Growing a Fortune
Another important piece of advice is to not live in a lifestyle creep. What I mean by that is you shouldn’t live beyond your means because you are really hindering the true potential of your investment portfolio. It is essential to save as much money as you can (especially if you are young) in order to invest at your highest potential.
Of all the research I did, one of the most common piece of advice was to diversify your investment portfolio. Don’t have all of your eggs in one basket because it’s dangerous to just have all of your money tied up in one thing. Having a mixture of bonds, stocks, real estate, and retirement funds means that you will be avoiding a disaster even though you may not make as money.
One major thing that prevents many people from investing are credit card loans, student loans, other loans, and mortgages. It’s necessary to save up and change your spending habits so that you don’t have to worry about having debt when you are investing. If your debt is preventing you from investing at your highest potential, then you need to save enough money and pay them off quickly (if it’s possible).