ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Become a Better Investor

Updated on August 25, 2007

Investing is the process of using your resources to generate more wealth. It is the single most important financial process in a capitalist society, because it enable the accumulation of wealth. This is a process that has transformed millions of people from humble beginnings to high levels of prosperity and wealth.

However, despite its importance, few people really understand the process of wealth creation. They see investing only as an obligation, something they need to do in order to retire, and not a creative, dynamic process that can enrich their lives and the lives of people around them.

How to become a better investor

There are several paths involved in becoming a better investor, but you will notice that it aways start from the desire of making more of your own resources. Making a fortune is a process that depends primarily on being focused and use the opportunities to achieve the desired income levels.

Therefore, the first step is to convince yourself that you want to become rich. If you set this goal, you will look for opportunities to make this happen in whatever are you are in. In fact, in each area of human work there are thousands of opportunities to make money: you just need to determine that you want to find such opportunities and use them.

Balancing your life

The second important thing you need to become a better investor is to balance your life. he most tragical mistake for low income people is that they always spend more than they make. This difference between what they made and what they receive will always come later in the form of high interest rates, lost of opportunities, and plain lack of resources. If you spend more than you receive you will always be in the need of more resources, and will loose any chances of making your money grow.

Finding money to invest

There are two general ways to find money for investing. The first is to save money, and the second is to make more money. Of course, if you have low income, unless you are intending to live an ascetic life, you will not have enough money to save. In that case, you should look for ways of increasing your income, such as finding a different job, or opening your own company.

However, even if you have a very large income to live, saving is always part of the process. Basically, if you spend more than you make, there is no way that you will ever find money to invest.

A big mistake that many people do is to think that making a lot of money (with a job) is the best way to be wealthy. In fact, it is better to make less money and invest some of it than making a lot of money and spending all of it.

Simple tricks that might work

There are simple tricks to find some money to invest that could work for you:

  • Take some money from your paycheck and send it automatically to your investment account. This can be done nowadays with a simple form that you fill with your employer
  • Maximize your contributions to the 401k. This will guarantee that you don't have to pay taxes on all your income - this is money that will be allowed to grow tax free. Moreover, if you company matches your contributions, if you are not maximizing your contributions you are leaving money on the table.
  • Start a side business: you can start your business life without leaving your day job. You just need to find your passion and use it to make some money.

Never give up

Investing is a long term decision. You need to start thinking in the long term, instead of for the immediate decisions. It will take some time for you to adapt, but it will also change your perspective of work. I am sure that you will find this new approache to life even more rewarding.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Doctor ARTFREDO C. ABELLA-PHILIPPINES 

      10 years ago

      It is not how much you earn but how much you save and invest that counts in life. Investment is the counter balancing force of debt. If a person invests he makes money work for him while if he incurs debt he becomes the slave of money and money becomes his master - he toils and works and pays interest charges to the master. There is that golden rule in investment which says that for those who have the money and invest it more money will be given to them. This is the simple analogy that since you invest your money it will bear more interest earnings and profits, hence you incur more money. This is simple as this - invest and money will grow similar to having a money tree while instant gratification or simply spending your money for end users needs will lead to poverty. He who invest his money will have a multiplier effect of money while he who spends his money for direct consumption will have zero interest earnings.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)