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| Set
Realistic Goals |
| 1)
Set your goals. Decide what you want your savings to do for you. You
should sit down and list your objectives on paper. College education for
the children? How long before they'll need it? how much will they
need? Retirement fund for yourself? When will you want to start drawing on
it? Trip to Asia? Emergency fund? New car? The answers to these
questions are important for they will determine whether you should invest for capital
growth or current income. Most off the time you will have to accept one or the
other. The answer, too will tell you how much risk you can reasonably
assume and which type of risk. |
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| Buy
the best |
| 2)
Buy the best known companies (GE, PepsiCo and Merk) Invest
for long term. |
| |
| Diversify |
| 3)
Diversify - Too much of any one thing is no good for anyone. |
| |
| Avoid Fads |
| 4)
Avoid Fads - Do not follow the heard they usually get slaughtered. |
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