As an investment enthusiast, you’ve probably heard that the best way to go is to buy low and sell high. While this is true, it can be quite challenging in practice.
To buy low and sell high, you’d need to be able to predict when the market as a whole or a particular asset (bond, stock, etc.) is at a low or high.
The year is quickly coming to a close, and for many, it’s a time not only to take a step back and relax but also to receive work bonuses. Around this time of the year, many organizations give fringe benefits to their staff to mark the festivities.
Now, if you work at such an organization and do get an end-of-the-year bonus, one crucial question would be, “what would you do with that additional income?” Now you could:
Where do you draw the line when it comes to money vs. convenience?
Do you clean your own house? Do you get your food delivered? Mow your own lawn?
How much extra are you paying for these services?
The reality is, the answer is different for everyone.
Your asset allocation should be targeted and individualized to fit you as a person, and to help you achieve your specific goals. Without goals and individualization you end up with a muddled sludge of stocks that can be financially destructive.
Building wealth is not easy. It takes hard work and discipline.
But everyone can achieve success, if they can avoid the major roadblocks to wealth accumulation.
Now, there are many roadblocks to discuss but one big one is…. that we don’t cultivate a healthy relationship with money. We develop beliefs, attitudes and habits about money in our youth that hold us back from being able to generate wealth and enjoy the financial freedom we desire as we get older.
