“Most people don’t know whether they are investing, speculating or gambling, and to the untrained eye the activities are very similar.”
Jim Paul and Bendan Moynihan authors of What I Learned Losing a Million Dollars
Knowledge is power.
When it comes to investing your money, you want to have all the resources and information available to you. You feel more secure when you can control your finances.
The path to financial freedom is paved by education. As an educated investor, you’ll be able to make decisions with more confidence, find solid, smarter opportunities, and partner with other like-minded individuals.
Knowing how to invest wisely isn’t an innate ability. You’re not born with all the knowledge and tools it takes to be an educated investor. It takes work and dedication — no one’s going to do it for you!
One of the riskiest things an investor can do is to take an opportunity without researching it first. Luckily, if you’re committed to learning and have an open mind, all the resources are available to you.
What Does It Take to Become an Educated Investor?
- Get to know investment lingo.
Some terms may be familiar, like assets and liabilities. Others like ROI or the difference between gross and net income may be new to you.
Eliminate barriers by familiarizing yourself with financial terms. By knowing the lingo, you will understand what kind of opportunities are available to you, as well as their parameters.
- Find a community of investors.
Connecting with individuals who are equally passionate and driven- and with similar investment goals- is essential to your success.
Can you invest on your own? Sure, but it’s not as much fun or as “smart” as partnering with others. For example, check out our project at the Cottonwood Office Park.
Another benefit of working with others? When you work with SAO, we do the initial research to find opportunities, brokers, agents, properties, etc.
When we find an amazing opportunity, we alert everyone in our network, but then it’s YOUR JOB to make an investment decision, based on your own investment objectives and due diligence.
Investing with others is a collective endeavor. Together, we make amazing investment opportunities possible.
- Read books, listen to podcasts.
There are SO many free resources to take advantage of in your free time- even on your way to work, while running errands, etc.
Here are a few books and podcasts we recommend:
The Wealth Formula Podcast with Buck Joffrey
The Real Estate Guys Radio Show with Robert Helms and Russell Gray
Cash Flow Quadrant by Robert Kiyosaki
Rich Dad Poor Dad by Robert Kiyosaki
Think and Grow Rich by Napoleon Hill
The Richest Man in Babylon by George S. Clason
The E-Myth Revisited by Michael E. Gerber
- Learn how to read financial statements.
You have to become comfortable working with financial statements such as balance sheets and income statements.
Math may not be your strong suit, but simple calculations will prove to be an invaluable skill in your arsenal.
- Never stop asking questions.
If you don’t understand something, ask. For new investors, you’ll probably have a lot of questions, and that’s a good thing!
Ask questions and seek advice from a trusted source or mentor. As you start to become more familiar with the process, your limitations, your interests and so on, you’ll gain more confidence in making decisions on your own.
At the end of the day, YOU need to be able to make decisions that are right for you and make the most sense for your goals.
- Get some practical experience.
Eventually you’re going to have to take the plunge and start investing. You can only learn so much from a book or podcast. The real learning comes from doing.
Ready to Start Investing? We’re Here to Help.