This is part of our Big Six series. We're digging into the six big areas of money and financial planning.
Now we're going to talk investing. Of course there's too much to cover in one short video. But you will learn the three things that will make or break your investing success.
Watch this video for the details:
What are the three things to know?
First, the biggest factor in being successful is simple your savings rate. Or how much are you actually putting into investments.
Sexy? No. Effective. Hell yes.
Shoot for saving 50% of your income. Sound like a lot? It is.
If that seems too much, then you need to work on Big Six #1: your income.
Second, being diversified goes beyond having stocks and bonds.
There are three P's that you need: public investments, private investments and your own personal investments.
Don't put everything in the stock market. That's not smart.
The last is simple. Be a robot.
Yes, be like a robot and don't let your emotions get in the way of good investing. Robots are programmed to do things automatically, without getting panicked or elated.
Your investing needs to be the same.
Of course I said it was simple, not easy.
If being unemotional is an issue (which is ok), use a robo-adviser or hire someone who is systematic in their investing.
Do these three things and you're most the way there.