You are currently viewing The 5 Essentials for Smart Investing The 5 Essentials for Smart Investing

By Jason Hartman | Published October 15, 2021

  1. You also must learn about money EQ, which deals with your emotional intelligence.
  2. Finally, you should learn about relationship skills, because all the money you ever receive in life comes from other people. All opportunities, too. If people could learn about Money IQ, Money EQ, and relationship skills, we’d be all set.
  1. You have to understand how to appraise worth. You have to know how to accurately appraise certain things, and you have to know how much things are worth: how much certain cars cost, as well as real estate, paintings, gold, stocks… When you become good at appraising how much certain thing are worth, it’s easier to be successful later on. Ex: If you don’t know how much certain things are actually worth, you could suffer huge losses that could have been avoided. If you buy a car thinking it’s really high quality but it’s actually junk, you could lose a lot of money, not only in the initial price of the car but also in repairs. Many people also learn the hard way that if you invest in stocks that aren’t worth anything, you could lose a lot of money, too.
  2. You have to know the right people. Knowing the right people always brings opportunities for investing and new career opportunities. For example, when you are connected to the right people, somebody you know may offer you a job when you need it, or someone really influential could give you an endorsement or put you in touch with someone they know who could give you connections that could change your life. Getting to know that one person in the chain of your whole network is priceless. That’s how I met my agent, and that’s how I’ve met so many mentors and friends in my life who are there to support me no matter what. If you have a certain amount of people in your network, you can be successful even when times are difficult, but a lot of people don’t know the true power of having a network. Many people struggle in life because they try to do things on their own.
  3. Knowledge about the world and how society works and why certain occupations get paid more than others. It’s important because you have to know what options are out there when you decide what kind of work you want to do in life. Your job or your work is what will bring you the most money in life, so unless you know all the options that are truly available, it’s hard to make a wise decision. For example, if you want to be a doctor, you’ll get paid a certain amount within such and such expectations of a stable salary, but we know that it also requires a lot of investments in time, money, responsibility, and energy. However, if you want to start your own business, you could lose all your money in the beginning or if things go wrong, but you could also be extremely very successful later on and make much more than any stable income from a job that pays hourly or monthly. So, think of your “work” as an object of investment, too. If you don’t have much money, that’s where you start: You have to start by finding a job and start making money to begin making more investments in yourself.
  4. Learn where money flows. For example, in real estate or the stock market, money tends to flow from certain sectors to others in a predictable way, from gold to bitcoin and all sorts of other things. If you can develop the skill of knowing where and how money flows, you can be much more successful in investing. But people who just lose sight of how money flows will inevitably lose money. It’s easy to see what an impact the flow of money can have when one huge company going bankrupt affects not only people in that area, but also millions of people in countries around the world.

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