INVESTMENT PRINCIPLE TO GET RICH: BASIC INVESTMENT RULES.

Today we will discuss the rules or principles on which we construct our investment structure. These principles are followed by the every successful investor in the world. As a beginner or laymen in investing everyone should follow to create a wealth or maximize your wealth. Now lets discusses:

1      REASON BEHIND INVESTMENT:  Before going to start invest in anywhere, you must define the goal yourself that why “I am doing that.”  What are the objectives behind my saving as well as investing. This will help you to allocate your saving in various kinds of investing option.

2    MUST HAVE INCOME SOURCE:  Investment needs your saving money and saving will be generated only when you must have a source of income. If anyone does not have a source of income, intention of saving does not arise. Investment is depending upon how much you save not how much you earned.

      Do not make investment by borrowed fund or by way of taking loan.

3     CONSISTENT EFFORT:  Be consistent in your investment option. Investment is done only once is not enough to build a big wealth. One should make a good habit to invest at various interval basis as per their goal defined earlier.

4    KEEP PATIENT:  Growing money is not a magic stick that if anyone invest today and get double within some days. You should give time to grow your money for long term to build a bigger wealth. In this case power of compounding will reflect.

5    LIQUIDITY OF MONEY: Your goal is defined, your saving is well known to you, you are doing invest as per your condition and requirement. In this case if any Emergency

comes suddenly and to meet the same you should not withdraw your investment as far as possible because if you meet the emergency situation by withdraw money from your investment your goal will be affected and disturbed and may not be fulfilled. So, before start investment journey, one must keep some saving in hand for accidental situation.

The investment principles are not end by these above discussion. There are more investing rules or principle would keep in mind when we make our portfolio. The above principles are foundation of investment without these investments have no sense.