The first rule of investing is saving

[Ucy]

Investment doesn't necessarily have to be in things that offer immediate financial benefits. You could also invest in your education(good education) , or invest in improving your talents. you can then use what you learn to benefit others and earn a living

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[TheUltraElite]

Investment doesn't necessarily have to be in things that offer immediate financial benefits. You could also invest in your education(good education) , or invest in improving your talents. you can then use what you learn to benefit others and earn a living

A good point indeed. Getting a good education does not necessarily mean you have to spend a lot of money. Rather people should follow their dreams because then only they will be the most productive in that field. This is something that is overlooked in the money making race. Hence investing in that type of education will have a future goal of making money and therefore a worthy process.

Maybe we need to change the title because the first rule of investing is gaining knowledge, you have to know first what are you investing too, you should know first the coin that you are investing in it is good or not, also make sure that you are investing in a long term coins and always avoid the pump and dump coins. After the knowledge then we can now next to the saving of money.

The importance of knowledge about what you are putting your money into is no doubt carrying importance. Even today I find people ending up on huge credit card fees because they forgot to pay the bill in within one month because someone selling that card twisted the cashback info - a pretty common thing done by creditcard salesperson. These are things that draw away money from your just because you did not have proper knowledge.

[Lorence.xD]

Investment doesn't necessarily have to be in things that offer immediate financial benefits. You could also invest in your education(good education) , or invest in improving your talents. you can then use what you learn to benefit others and earn a living

But most of the investing still needs saving, with education you need money to continue same with improving your talents you need to save money. I think that any investment needs to have some sort of prerequisite of saving so the investing part is going to be headache free.

[mindrust]

To have time (and money), you need to be young (and have rich parents).

I would agree on the rest but disagree that you need rich parents.

Many people come from poor families but are willing to work hard and get a proper education so they can pursue their dreams. If they manage to get through the rat-race though, they will be earning well and then they will be saving and investing. Of course being happy with your earning is a relative term but I think I made my point.

Unfortunately not everyone is able to make it through - that is where the difference lies.
You can essentially start saving up on costs in different aspects of life. Saving does not necessarily means hoarding money, but cutting down costs as well. Giving an example:

When you buy a new phone try giving your old phone to your parents so they dont have buy new ones, since the companies that produce them essentially want you to buy one every two years. You phone -> parents phone -> This can be a method of cycling the phones and selling the oldest phone from the house.

Those who make it that come from poor parents are usually exceptions. They glitches. I know it is possible but having a wealthy family makes things a lot easier and saves lots of time. They don't have to be ultra rich. I probably couldn't make myself clear enough.

Having a mid-class family is a nice thing to have when you are starting life. In my opinion, it is close to be the best. In some cases maybe it is the best scenario because they still know how to acquire skills and make things work unlike the super rich which only understand one language "money" and the super poor which don't have any skills and not capable of gaining any skills.

Having a good skill at doing something is usually the best way to survive through the life simulation.

[michellee]

as an example:

I allocate funds to invest in Bitcoin for $100 per month. although the price of Bitcoin in the market increases in the following month, then by continuing to invest $100 in that month, so the amount of Bitcoin you have will be less than in the previous month

or with the second picture option, if one or two months later the Bitcoin price drops, then keep investing $100 and you will get more Bitcoin.

as a result, with this method of disciplined mentality and being patient, without being affected by the Bitcoin price going up or down, then by continuing to invest $100 and keep investing.

Note: this is just my personal input, doesn't require you to trust it 100%, all back to your research and discoveries in doing various alternatives so that you can continue to get used to saving from an early age.

It is a good example to describe what @OP says. Maybe people will decide how much money they will use but from that example, they will know that investment in crypto needs constantly and continuously and have a range frame time to invest in bitcoin.

If they do that for, let say, one year, they will see their investment value will increase. But if their investment value decreases, they can continue to invest in bitcoin and allocate more money.

It needs the discipline to invest in crypto because that will not be easy as the market can increase or decrease in the future.

[Sterbens]

If they do that for, let say, one year, they will see their investment value will increase. But if their investment value decreases, they can continue to invest in bitcoin and allocate more money.

It needs the discipline to invest in crypto because that will not be easy as the market can increase or decrease in the future.

precisely. if he invests in Bitcoin, then he will no longer doubt the extraordinary things in the future. if he already knows the potential of Bitcoin, no matter how many times the price drops, he is always sure in the future that what he is investing in is a means of reaping extraordinary results. Therefore, back to the context of one's beliefs and mindset in setting aside money for savings. so, for me it is a good decision to choose Bitcoin. but apart from Bitcoin I'm not too brave to invest above $100 per month. specifically for Bitcoin, I believe anytime and anywhere. it was the best choice for me personally.

[LogitechMouse]

- you invest so that your money works for you. Even if you cannot drop your job, you can still live a bit better with extra income.
- Investing is sacrificing something today to get something tomorrow. This is just a definition. You save x today because you want 2x tomorrow or in year or whenever.
- The first step to invest is saving part of your income. No savings, no future.
- If you have credits unpaid (other than mortgages or other asset backed credits), you pay those first because they charge you a lot.

And from here we could start speaking on how are you going to save regularly, if it is going to be 10% of your income, or 5% or 50%, how are you going to learn about investing, etc...

1. I can consider myself as lucky still even though I just learned how to invest after studying. I've seen some people especially here in our place that are many years older than me and yet they didn't have any investment or worst they know nothing about investment. That quote "Make your money work for you" is my first reason why I want to invest at first. Now there are many reasons.
2. I knew it already that is why I sacrificed some expenses from foods and travel expenses just to have something to invest. I even stopped topping up in some online games that I've played just because of investing and guess what, that is one of the best decisions that I've made in my entire life .
3. I agree with this. I've seen people around here and even here in our country that became old and yet they didn't have any savings at all. That is why I commend those people especially those young kids that are starting to save their money already. For sure I will teach this to my kids. The habit of saving and investing .
4. I don't have any credits at all but if I have, it is always my priority and TBH, I even prioritizing credits and debts over house bills and expenses because I don't want to have any credits at all. I only take credit when I have no choice anymore.

Main point?? Invest, put a portion of your income into investing and save money regularly . That are some of the ingredients to financial freedom .

[sana54210]

Those who make it that come from poor parents are usually exceptions. They glitches. I know it is possible but having a wealthy family makes things a lot easier and saves lots of time. They don't have to be ultra rich. I probably couldn't make myself clear enough.

Having a mid-class family is a nice thing to have when you are starting life. In my opinion, it is close to be the best. In some cases maybe it is the best scenario because they still know how to acquire skills and make things work unlike the super rich which only understand one language "money" and the super poor which don't have any skills and not capable of gaining any skills.

Having a good skill at doing something is usually the best way to survive through the life simulation.

That's the reason why all the rich people in the world have rich families as well, it is just how the world works. You do not need to have Elon Musk as your parent in order to become a super rich person, in fact when those people get super rich they have a lot of kids and then their kids are a bit less rich then them.

However Elon Musk did had a father who owned a mining business and was a rich guy, so Elon used his daddies money to get here so far and yeah he put a lot on top of it but what did he really do? He bought Tesla when it was already making electric cars he didn't founded tesla, so it is not really that shocking to say he is rich, he just made good investments that's it.

In the end I would say that coming from a very poor family and becoming rich is a pipe dream, sure you could be a millionaire, but I do not think that anyone came from very poor family and broke over a billion dollars, that's very very rare, maybe a few people in the entire world of thousands of workers.

[michellee]

If they do that for, let say, one year, they will see their investment value will increase. But if their investment value decreases, they can continue to invest in bitcoin and allocate more money.

It needs the discipline to invest in crypto because that will not be easy as the market can increase or decrease in the future.

precisely. if he invests in Bitcoin, then he will no longer doubt the extraordinary things in the future. if he already knows the potential of Bitcoin, no matter how many times the price drops, he is always sure in the future that what he is investing in is a means of reaping extraordinary results. Therefore, back to the context of one's beliefs and mindset in setting aside money for savings. so, for me it is a good decision to choose Bitcoin. but apart from Bitcoin I'm not too brave to invest above $100 per month. specifically for Bitcoin, I believe anytime and anywhere. it was the best choice for me personally.

The beauty of bitcoin (I would call it the beauty of how we can invest in bitcoin ) is we can invest in any amount, even we can buy bitcoin for $1, but we need to consider paying the fee of the transaction if we buy from the exchanges. Maybe we can try saving the money for $10 every week or month to invest in bitcoin for about one or two years. We do not have to force ourselves to invest in bitcoin using big money if we do not have much money, although we know the potential of bitcoin in the future. We need to manage our funds because we need that money to survive this pandemic, but we also prepare our future by invest in bitcoin.

[Vishnu.Reang]

Entire thread is confusing. Because in most cases, the funds for investment comes from savings. I don't know a lot many people, who take out loans so that they can invest. And it is a risky option as well. In my case, 100% of my funds for past investments (including my purchase of Bitcoin in 2017) came from the money that I saved from my monthly income. And then again, how much you can save depends on your financial condition. If you have just started with your career, then I don't expect you to save a lot. Because during the early phase, the salaries will be low, and a lot of expenses need to be taken care of. You need to worry about the savings only after getting yourself settled.

[swiftbits]

The best way to get huge investments is to increase income streams and avoid lifestyle inflation.
If 50% of my income is enough for me, then 50% would be an investment.
The investment could be many things; it could be for yourself to level up your value.

[maxreish]

Indeed a good insight bout investing. If we wouldnt do this now, emercency situations will just left you some regrets. Also, I kind of agree that investing is saving up money for future. I do not think lending money for investment is good especially in crypto investments, where volatiliy will not guarantee you pay that money.

Take note that a successful investor will take any risk and noy by avoiding it.

[Yatsan]

Indeed. If you do want to invest into something that needs to spend money, of course you do need to save and earn money to afford spending. Rather than borrowing money from a bank or to someone you do know, it is still best to spend money on investing that comes from your own hand because if ever such investment fail, then you at least have no debt into someone that you will be hard to pay with. Also, upon doing investment, not all money you have saved must be put in all together. Only invest into the amount you can just ignore or afford to loose in a way you will not get frustrated when you loose such amount.

[GeorgeJohn]

Investment have a dynamic characteristics from my perspective, because some people invest without budgeting or planning for it because the capital is there, so op from your perspective or perception your right, because the Genesis of investment started with savings plans, i can consider the factor of saves as primary obligation of investment and also consider a process of having the plans of investment without cash to establish or activate it, because we can develop the mentality of investing but the cash is not there to activate it, but due to the plan is in existence you consider to lend with collateral in order to invest knowing that it will yields positively in time coming.

[oHnK]

Indeed. If you do want to invest into something that needs to spend money, of course you do need to save and earn money to afford spending. Rather than borrowing money from a bank or to someone you do know, it is still best to spend money on investing that comes from your own hand because if ever such investment fail, then you at least have no debt into someone that you will be hard to pay with. Also, upon doing investment, not all money you have saved must be put in all together. Only invest into the amount you can just ignore or afford to loose in a way you will not get frustrated when you loose such amount.

Investing with debt isn't matter if you can manage ur financial. Credit is one of the ways for investing, for example home credit, property with credit, those are the kind of investing. I dont think that those are bad for our financial instead of those help us to get asset with easiness. But for our notes, when you wanna try to take debt you have to choose for paying productive sector because when you pay investing with debt you should make sure that ur investing can earn passive income.

[bryant.coleman]

Investing with debt isn't matter if you can manage ur financial. Credit is one of the ways for investing, for example home credit, property with credit, those are the kind of investing. I dont think that those are bad for our financial instead of those help us to get asset with easiness. But for our notes, when you wanna try to take debt you have to choose for paying productive sector because when you pay investing with debt you should make sure that ur investing can earn passive income.

This is like the worst possible thing to do. If you take out a loan to invest, then the chances are that you will end up with a net loss. Let's consider a scenario. An individual takes out a loan at an interest rate of 12% per year to invest in certain assets. Now he can't invest in bank deposits, because the interest rate will be much lower than what he needs to pay on the loan, and on top of that, he needs to pay tax on that interest income as well. So that option is ruled out. Now comes the other options such as stocks and bullion. 12% return may or may not be possible with the stocks. But remember that taxes need to be paid on capital gains, even in this case. So after the taxes, the individual may be left with a net loss, unless for that year the returns from the stock market is exceptionally high. 

[Fredomago]

Indeed a good insight bout investing. If we wouldnt do this now, emercency situations will just left you some regrets. Also, I kind of agree that investing is saving up money for future. I do not think lending money for investment is good especially in crypto investments, where volatiliy will not guarantee you pay that money.

Take note that a successful investor will take any risk and not by avoiding it.

Successful investors always take advantage of potentials that most people afraid taking their steps inside, the risk is there, as always whatever form of investment there's risk that accompanying behind.

It will depend from each characters or attitude that each traders and investors have to look between the line, positive investors see potentials while those who can't handle the risk will give up and forget about it.

Staying away is just the same with losing your chances and regrets once you find out that everything went well. Find the right investment as it will save you a lot for your retirement.

[markdario112616]

...

Maybe we need to change the title because the first rule of investing is gaining knowledge, you have to know first what are you investing too, you should know first the coin that you are investing in it is good or not, also make sure that you are investing in a long term coins and always avoid the pump and dump coins. After the knowledge then we can now next to the saving of money.

Agree on the knowledge thing 'coz it's really a must, especially nowadays that they'd thrown their money it useless things and engaging with scams.

Though, I might take another turn on that first rule. The first rule should be is having money, I get it informative/smart beats hard worker at some levels but to start with investing you should always have money to use or to spend.

Saving and Investing money are 2 different things. One acts passively and the other is aggressive. By saving money, you don't need too much information on how to save. By the nature, one is just keeping the money away. Unlike in investing, which needs time and effort before you can initiate something or start on it.

[dezoel]

This is the hard part because saving when you are making a very little income is not something easy. I have faced this most of my life where I had trouble saving, these days thankfully I am saving a bit enough to put aside some crypto, in fact I saved enough to actually worth something once and then I participated in an investment that I rather talk about and then that went belly up so I had nothing left, but since the start of this month I once again started to save a bit, and then I will keep saving more and more in the future as well.

It is just a something that you should be doing because you are capable of doing it, but if you are incapable of saving money then you should not look for that and hurt your finances just to save some aside. I advice those people to have a side hustle, that way you could earn enough from your own job to cover your needs, then you could go online and work to make 50-100 bucks per month to save aside.

[bakasabo]

For me the first rule of investing is not to listen to anyone, but if heard something, check it two-three times.
I havent invested a lot, and I’m not a frequent investor, but I have already “burned” myself with bad investments. Listened to someone promisses and bought something without checking what is behind that asset.