Become an Investor

ThinkstockPhotos-510973953You start by saving, but true wealth creation is built through investing. A saver is someone who saves money regularly and does not want to risk it by investing. An investor is someone who has an expectation of return through appreciation in the capital value. Risk is not synonymous with gambling or get-rich-quick schemes; it can be calculated and modulated to methodically build investment success.

Investment success doesn’t come in a grand moment; it comes from doing many tasks – often boring, seemingly irrelevant tasks – one at a time, in a quite, systematic method. The five tools for saving and investing are:

  1. Determine what you want
  2. Decide what you are willing to eliminate in order to get what you want/
  3. Associate with people who will help you get what you want.
  4. Have a plan or a process that works and then work the plan.
  5. Take the time to understand how markets work.

Going from a Saver to an Investor. (2004). The First Time Investor. (3rd ed., pp. 12-13). McGraw-Hill