Be Patient

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson

Patience is the number one attribute of a prudent investor as no investments can guarantee fast profit. Moreover, value of investments typically fluctuates widely over the short term. Prudent investors typically look for long term rewards rather than short term gains.

Don’t Allow Emotions to Control Your Investment Decisions

“Temperament costs investors more than ignorance.”

“Be fearful when others are greedy. Be greedy when others are fearful.”Warren Buffett.

Be rational and do not bring your emotions into your investments. This would include being cautious on over-performing investments and investing while others are trapped in their pessimism. Emotions like fear and greed can make you engage in negative behaviours and reduces your ability to grow wealth. Every investment decisions you make must be backed by research and facts and not by “gut feelings”.

Know the Market

“An investment in knowledge always pays the best interest” – Benjamin Franklin.

In order to be a prudent investor you need to educate yourself and learn about the market. Without proper knowledge on what you are spending your hard-earned money on, it is like playing poker without looking at the cards.

Understand & Accept the Risk

“Risk is what an entrepreneur eats for breakfast. It’s what she slips into bed with at night. If you have no appetite for this stuff, or no ability to digest it, then get out of the game right now.” – Heather Robertson

Acknowledge that in all investments, there will always be a period of market uncertainty, short term under-performance and crisis. Ask yourself “how much money you are ready to lose” rather than “how much you want to earn” before you invest. Take steps to minimise potential loses e.g. by diversifying your investments and be prepared mentally that sometimes market trend can be suddenly turn against you.



Do you know that you should invest, but don’t know where and how to start? If yes then you are reading the right article as we would be discussing the 5 must-know facts about making investments!

  1. Investing is compounding!

In simple term, investment equals to putting your money to ‘work hard’ to earn more money. It works on compounding, i.e. re-investment of earnings and time. For example, if you invest 10,000 USD at 5% annual interest, your earning would be 500 USD for the first year, 525 USD (5% of 10,500 USD) for the second year, and 551.25 USD (5% of 11,025 USD) and forever increasing year after year! While investment can make a person rich, one must bear in mind that it is not gambling, neither it is a get-rich scheme.

  1. You must first know yourself before you start investing.

Three key questions you need to ask yourself before investing: what is your financial status, what are your financial goals and what kind of risk you can tolerate. Knowing yourself is important because this would directly and indirectly decide your preferred style of investing and the type of investors you become. There is no a single investing style that works for everyone, but there is always a right one that fits your needs and the kind of environment you are in.

  1. Investing is about educating yourself!

Investment requires skills and knowledge. The last thing you would want to do with your hard-earned money is to blindly throw them into some investment schemes that you yourself is unsure of, that would be equal to gambling! So, you should spend some time to educate yourself about the area of investment you intend to participate in. Understand how it works can help you to plan your investment portfolio.

  1. Investing is like a long adventure trip.

You need to have plans before you embark on a trip, similarly for your investments. Budget the amount of money you can invest as well as devise a strategy on how to maximise the usage of your money. Strategy must not only include how to enter the market, but how to exit with your profits. Proper planning can lower the risks of losing money.

  1. Never put all your eggs in one basket.

Diversify your investment. Put it simply, if you are investing in a stock market, invest in more than one company. You risk losing all your money if you put them in a single company when its shares nosedive. It would be wiser to invest in



Tip #106: Look for independent insurance for products online.

If you purchase an expensive cell phone or television, look for independent insurance online. This can frequently be obtained at a much lower price.

Tip #107: Use a clothesline, rather than your dryer.

It might seem embarrassing at first, but consider using a clothesline, rather than a dryer. You could save a great deal of electricity.

Tip #108: Turn off the lights when you’re not using a room.

If you’re not using a room, shut off the lights. Don’t pay for electricity if you aren’t using it.

Tip #109: Clean off your refrigerator coils.

Cleaning off your refrigerator coils on a regular basis can significantly reduce the cost of refrigeration by improving its efficiency.

Tip #110: Use a bank that offers online banking services.

Being able to access your records online can make an important difference when it comes to saving and spending decisions, so use a bank that offers online records.

Tip #111: Pay your bills online.

Companies are often willing to reduce your bill if you pay online. Doing this for 3- 5 companies can cut your bills back by 500 pesos or more per month.

Tip #112: Enroll in automatic bill pay.

Similar to tip 111, companies also are often willing to pay more if you enroll in automatic bill pay.

Tip #113: Purchase a coupon book for entertainment.

A coupon book is a book that contains hundreds of coupons for different products and events in your area. Consider paying the nominal fee of 400 pesos or 800 pesos to purchase one of these books.

Tip #114: Sign up for entertainment coupon sites.

Local coupon sites often offer region-specific coupons on a daily or weekly basis. Enroll in these sites to save on your entertainment and dining costs.

Tip #115: Join a less expensive gym.

Gyms vary greatly in price. Some are a mere 1000 pesos per month. Others cost well over 4000 pesos. Quit your current gym and switch to a cheaper one that offers the amenities you need.

Tip #116: Search out coupons for restaurants.

Many sites, including restaurant.com, offer large dining coupons. By joining and taking advantage of these sites, you can eat for a fraction of the normal price. That is for as little as 100 pesos, you can get a 400 peso meal.

Tip #117: Give up your gym membership and jog instead.

Instead of going to an expensive gym, give up your membership and get on a regular jogging routine.

Tip #118: Go to matinee showings of movies to save money.

Matinee showings of movies are frequently ½ to 2/3 the price of night showings. Consider switching your movie viewing times to save money.

Tip #119: Buy plane tickets far in advance.

In general, the further you purchase plane tickets in advance, the cheaper they will be. So don’t wait until the last moment.

Tip #120: Don’t accept quoted hotel prices. Instead, try to bargain.

Hotels are often willing to bargain if you’re willing to ask. So don’t stay silent unless you want to pay extra.

Tip #121: Bring snacks for flights.

Instead of paying $5, $10, $20, or more for snacks on flights, bring your own
snacks and save some money.

Tip #122: When traveling, consider staying in a hostel.

Whenever you travel, consider staying in a hostel, rather than a hostel. You can
save as much as $80 per night if you’re willing to stay in a communal room and
share a bathroom.

Tip #123: Buy hygiene products in bulk online.

Buy hygiene products, such as toothpaste and mouthwash, online in bulk. This can save you a lot of money in the long run.

Tip #124: Buy makeup online and in bulk.

Similar to tip 123, save money by purchasing your makeup online in bulk.

Tip #125: Avoid trends and fads.

Trends and fads in fashion and otherwise can be costly. Avoid them and instead
focus on your long-term happiness.

Tip #126: Get dental work done by dental students.

Dental schools are often willing to perform dental work for cheap or at a discounted rate. Consider getting work done there, rather than at a dentist.

Tip #127: Get medical work done at a nearby university.

Getting medical work done at a university, rather than a doctor, is often a good and low-cost alternative.

Tip #128: Purchase coupons on eBay.

Many people resell coupons they have received on eBay. If you’re planning to shop at these stores, anyway, you might as well purchase the coupons or gift cards to save money.

Tip #129: Housesit for extra cash.

One possible way to earn extra cash is to housesit. This simply entails finding someone who needs a house-sitter—and then to stay at their residence for a week or month while they are away on vacation.

Tip #130: Offer to babysit for neighbors and family members.

If you want to make money, one good way is to babysit for neighbors or for family




Tip #91: Get your tires rotated.

Rotating your tires can significantly improve your gas mileage and cut down on wear-and-tear. Make sure you do it regularly.

Tip #92: Wash your car after snow storms.

If you live in a cold weather area, make sure that you wash your car after snow storms to clean off all of the salt. This will save you money on maintenance costs in the long run.

Tip #93: Start riding a bike.

Riding a bike is a good way to both get in shape and save money. Do it rather than driving your car everywhere.

Tip #94: Avoid clothes that require expensive upkeep, such as dry cleaning.

Instead of opting for clothes that involve extensive dry cleaning, get clothes that do not require any special care. This will save you a considerable amount of money in upkeep.

Tip #95: Make your own cards to go with gifts.

Use one of the many available sites to create and print out a personalized card. This is considerably cheaper than buying one at the store; and may result in a more personalized card.

Tip #96: Offer to babysit as a gift.

If your friend or family member has children, offer to babysit for their children as a birthday present.

Tip #97: Use Open Source software, rather than expensive, proprietary software.

Open Source software, such as OpenOffice, is free. Consider downloading and using it, rather than using expensive software.

Tip #98: Reduce your printing or print at the office.

Print less or print only when you can do it for free. This can easily save you 400 pesos or more each month.

Tip #99: Print unimportant documents in the draft setting.

Cartridges can last much longer if they are primarily used to print draft-quality documents. From now on, consider using draft for documents that do not need to be high-quality.

Tip #100: Sell your old clothes on eBay.

If you have extra clothing that no longer fits (or that you no longer like), sell it on eBay for some extra cash.

Tip #101: Use eBay to sell off old computers or computer parts.

If you have an old computer that you no longer use, sell it on eBay or at least take it apart and sell its parts, such as the professor, motherboard, and ram.

Tip #102: Use local exchanges to sell old furniture.

Sell your old furniture on local exchange sites. Even if you do not make a lot of money off of each piece, you can at least get someone to haul away your old furniture for free.

Tip #103: Negotiate the price of your car.

Whenever you buy a car, negotiate the price, rather than taking what is offered.
Often, this can save you several hundred dollars.

Tip #104: Bring someone who is good at bargaining next time you purchase a big-ticket item.

If you’re planning to buy a big-ticket item, such as a house or a car or expensive jewelry, bring a good haggler with you. Make sure that this person does the talking and helps you to get a lower price.

Tip #105: Avoid purchasing store warranties.

Store warranties for electronics and other products are often rip-offs. Given the probability of replacement, the cost of the warranty is simply too high.