Monday, May 24, 2010

Stockowners, are you getting in position?

My second rule of investing is...Buy it ON SALE! (Get a good price on it.)

Since learning how to manage money, I've learned that it's not important HOW MUCH money you make, it's HOW MUCH YOU KEEP.

This has been invaluable, as this has allowed me to accumulate more money than many of my former coworkers who earned more than me. However, it's not the whole story.

The whole saying should read...



It's not how much you make, it's how much you keep AND what you do with what you keep.

That means that you are finding ways to make your money work for you.

I started this post referencing my second (2nd) rule of investing. Buy it ON SALE.

The market is starting to slump. I admit that I have no idea how much it will slump, but I'm pretty sure that today's prices are not the highest that we'll see during the next five (5) to ten (10) years.

That means it's getting pretty near time to buy things NOW.

Disclaimer: Do not invest with money that you will need during the next five (5) or so years. Nobody knows for sure when the market will rebound. In fact, nobody knows for sure that it will rebound at all, but history, statistics, and logic all point toward an EVENTUAL recovery--with prices that will be higher than today.

Is the idea to BUY LOW and SELL HIGH?

Why are so many people afraid to buy today, then?


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