We live in an impatient age, when it comes to money, we want more now, not today. Whether it’s a mortgage deposit or a credit card clearing that consumes our energy for a long time after we have stopped enjoying what we bought with them, the sooner the better. When it comes to investing, we want easy options և fast returns. This is where the current cryptocurrency craze comes from. Why invest in nanotechnology or machine learning when Ethereum is locked in an endless upward spiral and Bitcoin is the gift it continues to give?
A century ago, the American writer George S. Klasson took a different approach. In The Rich Man of Babylon, he gave the world a treasure trove of financial principles, literally based on things that may seem old-fashioned today: caution, prudence, wisdom. Clason used the wise men of ancient Babylon as speakers of his financial advice, but that advice is as relevant today as it was a century ago when the Wall Street crash and the Great Depression were expected.
For example, the five laws of gold. If you want to put your personal finances on a sound footing, wherever you are in life, these are for you.
Rule # 1: Gold is pleasing: increasing to anyone who invests at least one-tenth of his or her earnings to build property for his or her family’s future. That is, save 10% of your income. At least. Save more if you can. And that 10% is not for next year’s holiday or a new car. This is for the long term. Your 10% may include your pension payments, ISAs, premium bonds or any type of high interest / limited access savings account. Well, savings rates are now at an all-time low, but who knows where they will be in five or ten years? And a higher interest rate means that your savings will grow faster than you think.
Rule # 2: Gold works diligently և with satisfaction for a wise owner who finds a profitable job. So if you want to invest rather than save, do it wisely. There are no cryptocurrencies or pyramid schemes. We focus on the words “profitable” և “employment”. Let your money work for you, but remember that the best you can hope for on this side of the rainbow is a steady income in the long run, not a lottery winnings. In practice, this probably means shares in well-established companies that offer regular dividends կայուն a steady upward trend in stock prices. You can invest directly or through a fund manager in the form of unit trusts, but before you split a penny, see Rules 3, 4 և 5 …
Rule # 3: Gold clings to the protection of the prudent owner, who invests it to drive it on the advice of the wise. Talk to a qualified, experienced financial advisor before you do anything. If you do not know someone, do not research. Check them out online. What expertise do they have? What kind of customers? Read the reviews. Call them first to find out what they can offer you, then decide if a face-to-face meeting will work. Check their commission arrangements. Are they independent or affiliated with a particular company under a contract to promote that company’s financial products? A reputable financial advisor will encourage you to get the basics of a pension, life insurance, place to live before directing you to investing in emerging markets և space travel. When you’re happy to find a mentor you can count on, listen to them. Trust their advice. But regularly review your relationship with them, say every year, և if you are not satisfied, look elsewhere. It is likely that if your judgment was sound in the first place, you will remain with the same counselor for many years to come.
Rule # 4: Gold goes to anyone who invests it in a business or purpose that they are not familiar with or approved of by its custodians. If you have a deep knowledge of food retailing, be sure to invest in a supermarket chain that increases your market share. Similarly, if you work for a company that has an employee ownership scheme, it makes sense to use it if you are confident that your company has good prospects. But you should never invest in a market or financial product that you do not understand (remember the accident!) Or can not fully explore. If you are tempted to try your hand at currency trading or options trading և Have a financial advisor, talk to them first. If they do not match the speed, ask them to refer you to someone. Best of all, stay away from anything you are not sure about, no matter how great the return.
Rule # 5: Gold runs away from those who seek impossible earnings, or who follow the tempting advice of liars or conspirators, or who trust in their inexperience. Again, the fourth is followed by the fifth law. If you start searching the internet for financial advice գաղափար wealth creation ideas, your inbox will soon be full of “scammers” traitors who promise you the country if you invest 99 999 in their “system” – £ 1 £ 1XXXXXX- to turn. Chicago Mercantile Exchange. Remember, the only one who makes money with gold rush is the shovel seller. Buy the wrong shovel և you will quickly get into debt. You will not only pay through the nose for a system that has no proven value. Following this, you will probably lose a lot more than you paid for it. At the very least, you should check out the actual product reviews. And never buy a system, investment vehicle or financial product from a company that is not registered with a national watchdog, such as the UK Financial Conduct Authority.