Book of Wise Investors

As most of us know by now, life long employment is going to become extinct like dinosaurs in the near future. Corporations and businesses are placing profits first in the midst of globalization, translating into extreme cost cutting measures like retrenchments with minimal compensations.

Honestly speaking, it will require many long hours of self study on financial concepts and investigations into various investment vehicles. This website alone will not provide every piece of knowledge you need; neither will any single book and magazine in personal finance and investing. Constant ongoing learning and relearning, knowing what is going on in every single thing you invest is something indispensable if one wants to exit from and never to enter rat race again.

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Rich Dad Poor Dad lesson number 3 is “mind your own business”, this does not really mean starting your own business but it includes starting own businesses too. It does mean that to achieve financial freedom, to exit from rat race, managing own income and current wealth well is a must. In today’s time, you really cannot play it safe by putting money in fixed deposits and government bonds, and then slog for rest of your life. You have to play it smart.

All of us have a mind and the same time. It is up to each of us to do what we want with both.

This may sounds like an old cliché but the fact is that the only way to ever have a chance of leaving rat race is to live within your means, pay yourself first, and accumulate investment capitals, to invest and re-invest returns, reduce uncertainty through more knowledge and knowing what you are doing.

Short of winning the $10 millions lottery, to go from $0 to $1 millions, there is no doubt that one needs hard work in earning income and learning everything about managing own personal finance and deciding on best investments given what you know, perseverance in starting over when a wrong investment is made, discipline in really investing and not speculating, taking calculated risks and not anyhow sink in everything on a thing, timing of entering and exiting the markets, and some luck.

The following wise words are from a millionaire,

“If you don’t build up the means to invest, you will never generate any returns. The only way to build up the ability to invest is to spend within your means. Otherwise, salary is the only cashflow and that would mean running the rat race for a long time.”

Perhaps forever until lie inside coffin if salary is the only cashflow.

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