10 Commandments for the New Year
I stumbled upon these ten tips written by Stacy Johnson, founder of Money Talks News, in November 2010. His words of wisdom still ring true and are the perfect Fab & Fru way to kick off 2014. Happy New Year!
1. Thou shalt live like you’re going to die tomorrow, but invest like you’re going to live forever!
The ease of making money in stocks, real estate, or other risk-based assets is inversely proportional to your time horizon. In other words, making money over long periods of time is easy – making money overnight is the flip of a coin.
Money is like a tree: Plant it properly, care for it occasionally - but not obsessively - then wait.
Stare at a newly planted tree for 24 hours and you’ll be convinced it’s not growing. Fixate on your investments the same way, and you could miss out on a game-changer. That’s not to say to ignore your investments entirely – sometimes fundamental things change indicating it’s time to move on – but don’t act rashly. Patience pays.
2. Thou shalt listen to thine own voice above all others.
There are very few ways to get rich quick that don’t involve a serious amount of luck. If something seems to be too good to be true – listen to your gut.
If someone promises they can make you 3,000 percent in the stock market, they’re either a fool for sharing that information or a liar. Why would you send money to either one? When you hear someone promising a simple solution to a complex problem, stop listening to them and start listening to your own inner voice. You know there’s no pill that’s going to make you skinny. You know the government’s not handing out free money for your small business. You know you can’t buy a house for $300. Stop listening to commercials and start listening to yourself!
3. Thou shalt covet bad economic times.
Wealth is realized when the economy is booming, but that’s not when it’s created. Wealth is created when times are bad, unemployment is high, problems are massive, everybody’s freaking out, and there’s nothing but economic misery on the horizon.
Would you rather buy a house for $400,000, or $200,000? Would you rather invest in stocks when the Dow is at 12,000 or 7,000?
Get busy – put your cash to work and create some wealth.
4. Thou shalt not work.
MSN Money’s Liz Pulliam Weston wrote a great story called Pretend You Won the Lottery. She asked her Facebook fans to describe what they would do if they won the lottery.
Most of the responses had a lot in common. People overwhelmingly wanted to:
- Pay off all their debts.
- Help their families.
- Donate more to charity.
- Pursue their passions, including travel.
Note that these goals are largely achievable without winning the lottery. And that was her point: Listing what you’d like to do if money were no object puts you in touch with the way you’d really like to spend your life.
My philosophy takes this concept a step further: When it comes to work, you should try to do something that you regard as so fulfilling that you’d do it even if it didn’t pay anything. In other words, the word “work” implies doing something you have to do, not something you want to do. You should never “work.”
I made more money in 1990 managing a branch office for a Wall Street investment firm than I will this year. But I feel a lot less slimy (no offense to stockbrokers) and lot more fulfilled. You can’t put a price tag on that!| Print
Pages: 1 2