As a student of financial literacy, you will always hear other professional investors council their audience on developing sound and practical investing principles and the discipline to live by them no matter what the market’s outcome of movement. I have this to be advantageous in my own investing career and have put together a list of my own. Being your own small investor, you can implement the same principles or create your own. Either way, you need to have a set of principles if you are to be successful in the game of money (and believe me, this IS a game).
The first principle is a discipline that I borrowed from “The Millionaires Next Door” which is “create a net worth equal to your age, times your annual income, divided by ten”. This helps to keep you grounded and not make FOMO= fear of missing out on a decision. The second principle is to “create a passive income that exceeds your monthly expenses”. Third is “reduce expenses as a percentage of taxable income”. The fourth principle requires that you simply “minimize taxation as a percentage of income and net worth”. This one sometimes confuses people, but what this means is to find ways to pay less taxes on your investment income. Being incarcerated, I have very little personal expenses, so the best way for me to accomplish this is through my Roth IRA and through my educational company, the Psymple Words Company, LLC.
The last and by far most important principle is “no bad debt”, which is to say no personal consumer debt. Consumer debt only eats up your cash flow. The investing principles that you choose to implement are your safety markers. Their purpose should be to ensure that your wealth grows at a steady pace.
Feel free to contact me at ConnectNetwork.com. Paul Lee, #B58057.
More than just an investor, Paul Lee has also published coloring books, including:
Animazing Coloring Book: Cooky, Crazy, Animazing Fun (for ages 6-8)
"As an amateur illustrator, I was inspired to create fun and exciting illustrations by a nine-year-old girl who tragically lost her parents and sibling. I wanted to create illustrations that helped her cope with the loss, and helped guide her through the pain of losing her family. Witnessing the joy and excitement my illustrations brought her, my mission and hope became to provide other kids with encouraging and inspiring illustrations that are sure to spark their creativity in a cooky, crazy, fun way!" -Paul N. Lee
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