The Good, The Bad and The Ugly (Part 2)

Previously we looked at the top 5 worst investments and strategies I have seen over the last 3 decades.

This week we follow on with a quick look at the top 5 best;

  1. Live within your means. Save first, spend last and automatically invest the surplus into income producing growth assets.
  2. Quickly eliminate consumer debt such as credit cards, or personal loans for whitegoods or last year’s holidays.
  3. Buy great shares. Some like to trade, others buy and hold. Whatever works for you. The share market (i.e. owning a small part of a great business) represents the rise and rise of human evolution. Tomorrow’s wealth has not even been created yet. Importantly, shares provide cashflow AND capital growth.
  4. Buy great real estate. As per shares, real estate provides cashflow and capital growth. Some focus on residential property, others on commercial property. Both Shares and Property are income producing growth assets, and the key to financial freedom is to own multiple sources of income producing growth assets so that you earn money while you sleep.
  5. Tune out the “noise” which causes fear and leads to inaction. There will always be criteria that makes now NOT the right time to invest. However, those that invest regularly despite the noise, and increase their activity during market lows when prices are cheaper do better in the long term than those that try to pick the best times to buy and sell. Time IN the market seems to work better than timING the market.