How to be your own investor

Why should you learn how to be your own investor?

With jobs & pension funds vanishing as we begin to experience the economic adjustment after 40 years of USA living beyond its means (during which time the banks were allowed to introduce over $700 trillion of fake money into the system) your future does not look joyful.

Can you trust the bankers who created the Credit Crunch to invest in your future?

Can you expect the Government to set aside their own interests to look after you – especially when the non-accountable business/political leaders are obsessed with imposing cuts on us, in the hope of being able to afford to pay back the bankers the extra debt they created to prop-up the failed economic & banking system – despite the fact that Government expenditure is about 1/3 of GDP so cuts will cause GDP & thus the Government’s income to fall?

How can you expect anyone to invest in creating a better future for you if you do not invest in yourself?

Successful people know it is not how much money you have that makes you rich, because it is how you choose to use it that makes you rich or poor. Most big lottery winners are either dead (by committing suicide when they realize having lots of money does not end your money problems or buying stuff does not make you happy) or broker than before they won the lottery within 2 years because they do not know how to stop the habit of spending all or more of their income (just like Governments and poor people) and to have budgets (financial plans) to invest like rich people do.

Poor people spend money to pay others (eg pension fund managers & the Government) to gamble with their money & hope to get it back. Pension funds are mostly invested in the equity (also known as, the stock or share) market with most managed funds doing less good than the average share index. This is not surprising  when you realize the stock market is net zero gain market {ie for you to gain others must lose an equivalent amount} controlled by people called Market Makers who take their cut. Also fund managers must keep the fund invested in the type of shares described even when they are falling  and can only sell a proportion of their stocks at any one time so can not hold money as cash or silver & gold to take advantage of the fluctuations in price unlike you.

Rich people spend money to hire people like Warren Buffet, who knows how to the market works or they study the market themselves, so only invests in the companies that will make above average returns with less risk.

Successful people get rich by spending less than their income and using the rest to fund ways to add to their income streams such as

• learning about the economic & business cycles
• developing rules for investing based on risk to reward ratios
• having exit strategies before investing
• and leaving emotions out of their investing decisions – because when emotions are high, intelligence is suspended so you are taken by the flashy images of the Con men’s adverts
  
• invest in things that give a better return than the banks with a much lower risk
• or hire someone with the relevant skills

So if you are ready to get help to regain your true worth email 4 Success at Ask Philip Allen.com

Remember Poor People learn to earn by going to school to learn from people, like the Government & teachers, who have no idea how to create wealth, so that they can hope to get a “good job” that will pay well even in the down phazes of the economic cycle.

Rich people earn to learn how to be their own investor so they can restore the damage to their life-support system caused by Governments and their bosses (since 1913 in the USA) – the banks. Rich people develop the habit of paying themselves first and use that to invest in self development (as your income only grows to the extent you do) and in assets that create extra income. Are you going to join those who enjoy being wealthy?

Tags: Credit Crunch, higher returns, investment bankers, lower risk, Successful people invest

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