In this edition of the Cardone Zone Grant gives a crash course on investing 101. Here are the 3 mistakes people make with investing.
1.Investing too early. Do you think about investing when you have no money? Of course not. People ask Grant all the time what they should invest in with the 10K they got. If all you have is 10K you are still broke and have no business investing. The best investment Grant made in his life is not investing. He waited until he had a more significant amount to put his chips down on the table.
2. You start too small. What are you going to do do, invest a nickel? $5 goes up 100 times it's still just $500 bucks. The think is too small. The only reason to invest is to get rich, to have prosperity. Don't do little tiny amounts. They won't make a difference. Don't invest to grow, invest for freedom. Wait until you have a significant amount to invest. Grant was 33 years old when he had over a million dollars in the bank before he made his first real estate investment.
3.Diversify: Rich people put all the eggs in one basket. They protect that basket. Don't put a lot of different eggs in a number of different baskets. Rich people make 1 big deal. Wall street sells diversification. People don't know what they are investing in. Accumulate cash so you can put it in one big deal. People keep gambling with little pieces and get torched. You have to reduce your risk by doing your homework. You should not give money to people you don't know. You put $100 into a mutual fund and you don't even know where it's going.
Investing is a vital part to earning your freedom. Chances are you won't inherit wealth.
A good investment is something you put your money in and it explodes. The bank tells you to put your money in a bank and it will grow. No it won't. It will sit there. But you need to let your money sit there until you earn enough to save a significant amount.
If you have 100K to your name you don't want to spend all that in one deal. You still need to have something left, you want to sleep at night. Get your income up and keep parking the money until you have enough to make a big play and still have some left over. I spent 350K on my first deal when I had over 1 million saved.