Lewis Howes sat down with Billionaire hedge fund manager Ray Dalio to discover the secret to becoming wealthy at a reasonable age.
The Woman Post | Carolina Rodríguez Monclou
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Have you ever wondered how to invest in your 30's to be wealthy in your 40's? Billionaire Ray Dalio has the best tips for you. First, calculate how many days, weeks, months, or years you can live on your savings because when you do that, you'll gain security. Look at how much you are spending and calculate how much do you need.
"Whatever that number is, you'll need more than that because it may go down rather than go up," he points out.
The second step is to identify the most important thing for you, whether your business or your residents who have a symbiotic relationship and know well.
If you decide to start with your business, you're close to investing in yourself with whatever that may end up being. As Dalio highlights, "that may end up being your best investment."
Another piece of advice from the expert is investing your money in material things that bring you joy. For example, owning a home brings with it a lot of benefits. However, he also clarifies that it can be acceptable to rent and buy depending on your position. By doing this kind of investment, you'll be gaining some experience that will allow you to go beyond that.
A great skill to improve your finances is to be "net positive." This will help you avoid the most common mistake of investing: Thinking that the investment that did good is a good investment.
Quite often, those markets that did really well and became more expensive are the most attractive to beginners. "The naive money buys the thing that was or is hot," claims Dalio.
Another great tip is to diversify and not to put all your eggs in one basket. From the billionaire's perspective, all the investments compete, and it's not easy to tell which one is better than the other because if that was the case, anyone could make a ton of money.
Dalio spends millions of dollars per year on research to try to give him an edge. The secret is in knowing how to diversify well. Here are some practical pieces of advice from the expert:
-Get your savings right.
-Have great humility about what you don't know.
-Don't buy the thing that was hot just because you think it's hot.
-Know how to diversify well.
-Don't be afraid to learn and talk about money.
Money's an important topic that families shouldn't be ashamed to talk about in front of their children. For example, getting your kids to understand how a credit card works is very important. Money can cause you great joy and give you personal freedom, or it can be catastrophic and eradicate your happiness. Your choice is where does it fit? Do you want it to destroy your life, or would you prefer understanding how it works and dealing with it?
That's a personal choice people have to make, and the best way to do that is to learn more and talk more about it.