Four Investing Rules the Super Rich Always Follow (updated)

Today, there is more money in circulation than ever before, which means there’s more money to be made. Who makes this money isn’t about luck or having a “secret formula”. It’s all about being clever, and knowing how to make your money work for you.

Whether you’re new to the investing game, or you’re a novice investor, there just might be some tactics that you either haven’t utilized, haven’t yet heard of, or have outright ignored. But that stops today.
For most investors, the reason they’re doing what they’re doing is for their future. For retirement. To be secure in old age, and then possibly passing on that wealth to children or other loved ones. When there’s so much hinging on something as unpredictable as the stock market, you have to know what you’re getting yourself into.

Now, there’s a reason that the super rich are super rich, and just because you don’t live like the super rich, doesn’t mean that you can’t invest like they do. It’s not all about birthright or social and economic privilege (although, admittedly, foot-ups like those definitely are a contributing factor.), you have just got to know where your money is going, and with a few quick adjustments and tips, you’ll be well on your way. So let’s get going.

Keep an eye on inflation

Inflation isn’t intrinsically good or bad. Savers often think they can’t afford to lose any money by investing in the market. But they don’t realize that when they don’t make their money work for them, they are losing. Inflation creeps up over the years and steals from your savings if you’re not earning enough to make up for it. There are some serious consequences to saving cash for too long. For that reason, the wealthy and other investors will invest some money in products likely to at least keep pace with inflation.

Make safety your number one priority

One word: Re-balancing. Re-balancing is the act of making sure that with any market volatility that may have occurred, you bring it back into the strategic allocation that you had intended. Meaning that if any assets stray outside of an acceptable range, they’re brought back or sold off to bring them back in line. Making time for re-balancing is imperative to keep assets in check, and so that you can reach your financial goals. Set parameters based on asset prices rather than a preset time period.

Don’t immediately hop on board to invest in the next “Big Thing”

It seems that everyday there’s some new hot item that investors are throwing money at, only for it to fall short of the return that was promised so hard in the beginning. Don’t play this game. Impulse investments are the opposite of the strategy that you need to be emulating from the super rich.
Warren Buffet, pretty famously, never invests in tech. He says it wasn’t because he is too dopey to understand Bitcoin. It was because he understands that the inherent value that Bitcoin fanatics think Bitcoin has is entirely in the eye of the beholders. Which isn’t to say that those who do invest in tech like Bitcoin are doing anything wrong, to some like Buffet though, it just doesn’t seem that Bitcoin has any intrinsic value.

Don’t panic, always keep a cool head

The best investors are almost always going to take the long-term approach with the decisions made concerning their portfolio. They do their best to ignore the day-to-day insanity of Wall Street because of the uncertainty, and often knee-jerk reactions to some investment decisions.
Be steadfast, and endure. Making rash decisions in the heat of the moment can only ever hurt you and your investments. Anyone who was in the stock market in 2008 can tell you that struggling through it was worth it, as the market was up 30%+ in 2013, making it well worth it to stay calm.

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