Many people have misconceptions about how to build wealth and how to invest. Here are a few tips that you can put into practice today when it comes to your expendable income.
Save in the good times; spend in the bad times
Many people do the exact opposite of this – they try to save when times are bad and there is no money. This is the time in which you should be buying up assets at pennies on the dollar and taking advantage of the financial misbehavior of others. Recessions create millionaires. When times are good and there is money, they do not save, but spend on consumer goods and other things that do not help to build any value or net worth. If you want to invest like the pros, do what everyone does not do – save in the good times and put money in the street when things are bad.