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Be Even More Different: Live Below Your Means.: First-Time Investor: Grow and Protect Your Money

To grow and protect your money as a first-time investor, it's crucial to live below your means and spend less than you earn. Avoid the trend of shunning stocks due to past market crashes, as this can lead to missed opportunities for growth. Instead, invest your savings in assets like stocks to ensure your money works for you over time.

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Okeowo Ibrahim
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21 views1 page

Be Even More Different: Live Below Your Means.: First-Time Investor: Grow and Protect Your Money

To grow and protect your money as a first-time investor, it's crucial to live below your means and spend less than you earn. Avoid the trend of shunning stocks due to past market crashes, as this can lead to missed opportunities for growth. Instead, invest your savings in assets like stocks to ensure your money works for you over time.

Uploaded by

Okeowo Ibrahim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

2 | First-Time Investor: Grow and Protect Your Money

2. Be even more different: Live below your means.

I hate to saddle you with two pieces of bad news right off the bat, but you can’t follow
my first piece of advice unless you spend less than you earn. The good news is that you
can make this a habit and eventually it will become second nature.

Your friends may spend all the money they have and rack up big debts in order to spend
even more, all in order to live a lifestyle they can’t afford. They will likely wind up with
finances so fragile that when a need comes along they will have to either borrow more
money or sell the investments that are supposed to be growing for the long term.

3. Make your money work for you.

There’s a terrible trend afoot in the land lately; Many young people, rightly observing
the damage to their parents’ and grandparents’ fortunes from what’s being called the
Great Recession, have vowed to avoid that fate by shunning stocks and seeking
guaranteed returns.

This happened after the stock market’s crash in 1929 and also after 1932, 1974 and
1987. After each of these crashes, many investors were unwilling to trust the market
again for decades. During those decades, those spooked investors missed out on some of
the most productive years in the market.

So my advice to you is simple. Once you have saved money, don’t just put it in the
bank. Invest it in something that can grow over time. That means owning something –
most likely stocks of public companies. When you put money in the bank or buy bonds
or

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