Welcome back!

In my previous newsletter, I wrote to you about the first three laws of money. In case you missed it, here's a quick summary:

Law of Money #1 - Save and compound

Money favors those who consistently save at least 10% of their earnings. Think of it as building your financial foundation for the future. In today's world, aiming for 15% or even 20% savings is wise, following the 50-30-20 rule. You can catch up on this in our last newsletter [here](insert link).

Law of Money #2 - Passive Income

Our second law delves into the world of passive income, the secret to financial freedom. Passive income allows you to earn without constant effort. This can involve investing, creating digital products, or exploring real estate opportunities. Find the right balance between effort and income to maximize your wealth.

Law of Money #3 - Respect Your Money

Money has a unique place in our lives, and how we treat it reflects our self-worth. By respecting money and using it wisely, we make sound financial choices, leading us on the path to financial success.
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Want to catch up on the details of the three laws? Read my last newsletter here.

Now, let's pick up where we left off and dive into the remaining two laws of money.

Law 4: Invest Wisely

Imagine you're walking through a forest. You see two paths ahead of you. One is a well-lit trail you've walked many times before, and you know where it leads. The other is a dark, mysterious path with strange sounds echoing from within. Which path would you choose?

Investing your money is a lot like this forest. The well-lit path represents the things you understand, the ones that make sense to you. The dark path, on the other hand, is filled with things you don't understand, and it's shrouded in risk and uncertainty.

Warren Buffett, one of the richest people on earth, has a simple rule when it comes to investing: never go down that dark, unfamiliar path. His investing strategy is clear: "Never lose money," and rule number two, "Never forget rule number one."

Investing isn't about rolling the dice and hoping for the best. It's about making smart choices with your money. Of course, all investments come with some level of risk, but taking huge risks for the chance of high returns isn't a wise game plan.

Buffett advises that it's best never to invest in something you don't understand. That goes for businesses, stocks, or any kind of investment. It's essential to know who you are as an individual investor and what your investment philosophy is. This is like understanding your "investor DNA." As long as you stick to investing in things you understand, you become more competent, make better decisions, and stand a better chance of success.

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Law 5: Beware of Scams

Have you ever received an email or a phone call promising you quick riches? Maybe someone told you that you could double or even triple your money in just a short time. It sounds amazing, doesn't it? But here's the truth: if something sounds too good to be true, it probably is.

Law number five of the money game warns us about financial scams. They promise you the moon and the stars, but in reality, they lead you into financial darkness.

Investment scams come in many forms, and they often promise returns that are much higher than normal. These scams can be very convincing, and they often use high-pressure tactics to get you to invest. They might even come from people you know, like friends or family.

But here's the crucial part: Always be suspicious of unsolicited investment opportunities. Even if it's someone you trust, take the time to do your own research. Don't rely solely on the information provided in emails or over the phone. Look for possible scam alerts about the investment being offered.

One way to protect yourself is to check the legitimacy of your investment with your local securities regulators. These are government organizations that oversee investments to ensure they're legitimate. They can help you determine if an investment opportunity is real or just a scam.

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To your extraordinary success,

John

Educator| Father| Financial Strategist| Realtor| Mortgage Broker| Retirement Planning Specialist

If You Fail to Plan, Then Plan to Fail.

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