Do not think about the inheritance that you will leave to your children
Do not leave in the inheritance that you will leave your children, think better about how to teach them to invest and save.
You do not have to think about the inheritance that you will leave your children, if you really want to leave them a good legacy, what is essential is that you teach them to save and invest wisely. Many believe that we owe it to our families to leave a healthy inheritance once we deal with this death spiral of working and saving money in adult life.
But the most appropriate thing is that you leave your loved ones a legacy of investment intelligence and enough intelligence so that they are able to create their own savings and manage their finances well in the short and long term.
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A ROYAL LEGACY
Perhaps you have a recipe in your family that is passed down from generation to generation , perhaps it is a simple recipe but you always do it the same way because it is the legacy of your great-grandmother. This recipe has behaved for decades between generations and everyone knows how to make it so that it turns out well.
It’s a simple example, but if it happened to you, you know how grateful you can be for the culinary wisdom that has been imported into the family kitchen for so long. This is the same thing you should do with the investment of intelligence between your loved ones and of course, in your children.
TALK ABOUT MONEY
In many families, always, talking about money or economic investments seems to have been a taboo subject … that is why, perhaps in your childhood, no one taught you to manage your money . Possibly everything you know you have learned on your own, but now you have the responsibility that your offspring learn from you about what it means to learn to invest or save money so that their future is promising.
You will want to start with principles that are easy to understand, simple to convey, and that spark conversation and an interest in investing and saving money for your children, both now and in the future. But how to achieve it? Read on to keep these tips inside.
NEVER LOSE MONEY
This is the first investment rule and is a cautious reminder to always do the right thing to keep your money well protected. Never make an investment if you think there is a chance of losing. Never forget this rule, because it is essential to teach it to your children .
TO INVEST AND SAVE, YOU FIRST HAVE TO SURVIVE
Understand risk and the importance of managing it. Risk is not volatility. Risk is the possibility of losing money permanently. If you spend more time worrying about downside risk in your investments than dreaming about upside potential … then it is better to save and not invest.
COMPOUNDING IS A POWERFUL FORCE
Albert Einstein supposedly said, “Compound interest is the most powerful force in the universe . ” Compete with the wheel as one of the most important tools of man. You need to harness this force to become a great investor.
THINK IN YEARS; UNDERSTAND IN DECADES
Time is one of the most important elements in the compounding formula . Give your investments time, be patient with them. Only then will you realize its full potential.
KNOW AND UNDERSTAND THE DIFFERENCE BETWEEN INVESTING AND SPECULATING
Investing is easy to make and be successful ; speculation is even easier to do but extremely difficult to achieve. Speculation is a short waiting period and an uncertain outcome. An investment is a long holding period and a more secure outcome.
DIVERSIFICATION IS THE ONLY “FREE LUNCH” AVAILABLE TO INVESTORS
Diversification means reducing the risk of loss by investing in a variety of assets. Use it as often as possible, but not as often as possible, because too much diversification reduces performance.
Dr. Tabriella Perivolaris, Sara's mother and fan of fashion, beauty, motherhood, among others, about the female universe. Since 2018 she has been working as a copywriter, always bringing to her articles a little of her experience and experience as a mother and woman.