By Brandi Savitt – July 25, 2011
Finding Balance to Build Wealth
Do you love the thrill of speeding down the highway on the back of a motorcycle? Or dating the bad boy taking you for the ride? Have you ever jumped out of a plane or eaten live salamanders while trekking through China? Well, whether you have a bit of the daredevil in you or not, when it comes to saving and investing, finding the balance between playing it safe and taking a risk is the key to building wealth. If you risk everything and lose, you’ll have nothing. If you risk nothing, you will never have more… Get the picture?
So, if you’re serious about starting to build your financial future, we have some Fab & Fru tips to help you get to know your financial comfort zone and learn to figure out when to step out of it!
Know When to Hold ‘Em, Know When to Fold ‘Em
I never thought that I would be recommending a Kenny Rogers song about playing poker as a go-to guide for financial advice, but hey – his words ring true! As Kenny sings – “You gotta know when to fold ‘em. Know when to hold ‘em. Know when to walk away. Know when to run”, what he’s really saying is – before you start taking risks with your money, first you must learn to play the game and learn to trust your instincts! So, how do you do that?
If you don’t know anything about investing and building wealth, you are certainly not alone! As when starting anything new, the key is to dive in and get your hair wet. However, that doesn’t mean closing your eyes and randomly picking a company on the Stock Exchange to invest your life savings in. What it means is — become a sponge and learn everything you possibly can to get more comfortable.
Luckily, there are a plethora of books out there and countless professionals to talk to – and we recommend you do it all! But unless you have a trusted investing whiz in your inner circle, we first suggest you do a little homework on your own before you start a round of informational interviews with financial planners and other wealth management experts. Here’s a short reading list to get you started:
A Woman’s Guide to Investing by Virginia B. Morris
Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel