Biography of Bodo Schaefer is foggy: there is no reliable information about the times of his youth, and he himself does not seek to reveal the veil of secrets. Success was brought to him by coaching and writing books, but several attempts to build a business turned into a failure.
Schaefer's works on monetary literacy are a huge success in the Russian Federation and abroad.. The best known of them is "The Path to Monetary Freedom", "Laws of the winners", Breakthrough to Monetary Achievement, "The funds have an excellent effect on the lady.", “It's time to earn more. How to increase your income all the time», “Drag, or the alphabet of means ", "Kira and the secret of the bagel".
1. You must have a cash cushion.
« Learn to Save. Rich is not the one, who buys a lot, and that one, who knows how not to spend money in vain. To become a self-respecting person, you need to have an untouchable cash supply for six months ".
The main difficulty is not, that a person does not earn much, – he squanders all the funds on things he does not need. Learn to save as a matter of principle, how to find a method to earn more. The higher the income, the more temptations and unnecessary expenses. You need to control yourself and give up, what you don't really need.
The sign of a mature person is the ability to manage funds. If he cannot manage his funds, how can you take it seriously? Specifically, thrift and financial literacy open the door to wealth, but not decent income. Comfortable people think, that savings lead to even more income, which is obtained from clusters.
2. Set aside twenty-five percent of regular income and fifty percent of unplanned income.
There is a well-known recommendation to create clusters of ten percent of the salary.. But Bodo Schaefer thinks, that this amount is not enough: it is necessary to diligently postpone at least a quarter, and in some cases, half of the income. To get ahead of inflation, it is necessary to learn how to invest these funds. According to Schaefer, "Shares have always been and will always be more profitable than funds", as they are an investment in a business.
So as not to worry, giving up something, the speaker recommends accepting savings as "wages". Same way, how people pay in a store or for housing services, you need to get into the habit of paying the most important person - for yourself. The ideal is to use an automatic saving system. For instance, set up permanent transfers from a bank account, what will help make significant clusters.
3. Don't work for funds, let them work for you.
"Decide for yourself, do you want to have a "currency machine" or be a "currency machine" for the rest of your life ".
The person becomes comfortable, when he starts living on interest from his own investments. At first, he must learn to save and earn more., and then - invest the acquired funds in earning assets. To this end, you need to change your current strategy.: not work for funds, but to do so, so that the funds work for you.
Investing will help you accomplish this approach., in other words, the receipt of passive income due to the growth of the share price and the payment of dividends. Never invest all your existing savings on the exchange: you must have funds for an unexpected event. Or for that purpose, to profitably purchase securities during a sharp fall in their rate.
4. Remember, that stock market fluctuations are cyclical.
"On the stock exchange, excellent and bad times follow each other".
Investing involves risks and asks for self-control, but if you want to achieve monetary independence, it is necessary to be ready for this. After the fall, the course goes up, and so it can be repeated many times. The main mistake of an investor is selling securities in a panic, when their value went down. This decision is unwise and leads to losses..
One should not only stay cool during the fall, but also look for new profitable opportunities. In a crisis, the cost of quality stocks can significantly decrease: while others panic and get rid of securities, experienced investors actively buy them. And here it is impossible to delay - courses able to recover quickly, do not miss a good moment for a deal.
It is necessary to aim at long-term investment: invest money for at least two to five years and not buy shares with those funds, which you may need soon. If you need them just then, when the asset price fell, you will not receive income, but you will go to the minus. For the same reason, you cannot invest money., borrowed, - unknown, can you earn, to give them away in time.
5. Keep in your portfolio stocks of five to ten companies.
A financial trainer advises to purchase securities of firms from different sectors of the economy and even on foreign exchanges (taking into account the specifics of the selected country). The more diversified the investment portfolio, the less the risk of incurring losses. However, keeping track of a large number of stocks is difficult., so if you are not professional trader, stop at five to ten types.
If you want to receive dividends, you need to choose securities of large reliable companies with a large financial reserve. According to Schaefer, should "bet only on quality and strength", that is, to the leading enterprises in their industry.
Well-known financiers urge to carefully study the company's reporting, attaching great importance to odds and statistics. Schaefer says, that for an investor, common sense is first of all important. If you think, that the chosen company will continue to actively develop, buy her securities.
6. How much did you earn on the exchange, it will become clear after the sale.
“If your stock drops sharply, you have not suffered any losses yet. You only incur losses if, if at this moment you sell your shares ".
Fluctuations in the stock exchange rate alone do not generate losses or profits.. They arise at the time of the transaction with securities. Do not forget about, that the broker's commission is deducted from income and taxes.
Emotions need to be pushed into the background and decisions should be made, guided solely by reason. Be sure to follow, how much have you earned or lost. Record all transactions carefully, that you commit. For example, by purchasing shares, should be recorded, what course do you expect from them, and if you decide to sell them - why are you going to do it. According to Schaefer, written support for asset transactions increases the level of financial awareness.
7. Don't be influenced by the crowd.
“90% of stock exchange traders incur losses, because they do not follow the rules described here. The majority of shareholders finance the profits of the minority ".
Bodo Schaefer notes, that many investors are acting unreasonably: sell stocks on a downturn, but they buy when prices rise, but it would be logical to do the opposite. And they impose such a disastrous "strategy" of investment on others.
When quotes go up confidently, real excitement begins around securities - everyone calls to "quickly jump on the bandwagon of the stock exchange train", although in fact it's too late. Buy, when everyone sells, and sell, when everyone buys, - this is the golden rule of successful investing.
8. To have more, need to mean more.
To achieve financial independence, you need to think about, how to become more valuable in the labor market - earn more. Work is the same market relations: wages depend on the ability to sell oneself and convince the bosses of their importance.
The best investment is in your own personal and professional development. Try to acquire as many skills and abilities as possible, distinguishing you from others. Then you will become an indispensable specialist., who are willing to pay large sums.
9. Focus on being, what brings results.
Most of the actions are unproductive: Pareto's law applies here (only 20% bring results, 80% - useless). To become successful, you need to concentrate on that small part, which is effective, and put maximum effort into it.
For most people, a series of unnecessary tasks seems important and interesting.. Doing productive things is boring: they require significant effort, but this is exactly the path to success. Habits and ways of thinking pull a person back - to achieve success, you need to get rid of useless actions, on which most of the time is spent.
10. Forget living on debt.
“Surely, it will not always be easy for you to walk the path of financial freedom. Much more difficult, but, live in financial dependence ".
Today it is considered normal to be in debt., because people strive for a beautiful life: buy expensive houses, Cars, clothes and phones on credit. In fact, they don't need all this.. Furthermore, this way of thinking leads to the impossibility of achieving financial well-being.
Can't waste that, what you haven't earned yet, but this is how it happens with loans. As a result, a person falls into bondage., he loses confidence, becomes addicted.
“Debt is a strategy for losers, which means, saving is a winning strategy ".
You need to get rid of debt wisely. Don't pay all the money you save right away.. Bodo Schaefer believes, that half needs to be postponed, and the second part - to use to pay off loans. This is necessary in order to, so that the money airbag was formed even during that period, when you still pay the bills.
