Money | Investment tips from world’s richest people

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If there is one set of people that knows a lot about money, it is rich and successful entrepreneurs. So, what can we learn from these gurus?

We all would love a life without debt, and the financial freedom to do the things only money can buy. Achieving that dream is difficult, but not impossible.

Just ask the world’s rich that made their money from shrewd business decisions, investments and financial management.

As we seen through the boom years, many people lost out on a lot of cash when they invested in things that they knew nothing about. Savvy entrepreneurs and other rich people tend to stay away from complex investments, such as hedge funds, and others that have little understanding of. Many complex investments are sold to investors that deliberately don’t understand them. If the rich don’t understand they investment, then don’t buy it. We should all learn from that. 

Not spending money is the same as making money. By making a few sacrifices, you can use the money to save or invest in areas where you see a safe and risk-free product.

Don’t put all your eggs in one basket. The wealthy never put all of their money into one or two stocks. Having a diversified portfolio is key to maximising return, and minimizing risk.

While it’s good to get business recommendations and professional advice from experts, it is just as important to become financially educated. This will give you the confidence, knowledge and power to make the right financial decisions, and investments.

Even billionaires know that having a budget is important for them to organise their finances properly and find out where their money is really going. Having a better understanding of what you can spend and save allows you to make the best financial decisions for the future.