Safe stock exchange strategies: earn money with financial investments

To paraphrase Henry Ford, getting rich is easy. You just have to spend less money than you make. Sounds logical right?

How to get rich easily

Simply spend less - that sounds a bit too easy. After all, whoever manages to do this is faced with two central challenges: Firstly, how is it possible not to pay everything in the form of taxes and levies? And what to do with the rest of the money? In view of falling interest rates, it hasn't made a difference for a long time Fun more to rely on savings accounts, fixed-term deposits or call money accounts. Even those who choose the top providers usually do not even manage to compensate for the inflation rate. That's why I've been betting on stocks for a very long time (and successfully).

But if you want to emulate me, you should first get to grips with the basics. Because mine Opinions After too many speculative guides à la »Become a millionaire in four weeks« are on the market, I would like to use this book to convey a realistic picture of the stock market. That's where the problem lies; It is no coincidence that the stock exchange in Germany has a bad reputation. Most People in this country are angry about the low interest rates, but shy away from a change in terms of money. Various price slumps have burned themselves into the collective memory of Germans. However, if you look at the situation soberly, you will primarily discover the positive sides. It is true that in 2000 prices fell almost into the abyss - the DAX lost three quarters in a short time - but the losses of the past have long since been made up for.

How to find the right stock market strategy

This rollercoaster ride of the last 15 years confirms a Pattern, which is also characteristic of earlier stock market phases: prices recover after crises, and those who keep their nerve can achieve far higher returns on the stock market than with other forms of investment. I didn't know such statistics when I became interested in money and the stock market. Instead, I was already as a little boy clearthat I want to be a millionaire one day. This "Job« seemed absolutely plausible to me, after all he opens it ways to many beautiful things. To put it in other words: Mine Objective was financial freedom. With this in mind, I began to delve into rich people's recipes. One of my first insights was that the rich don't deposit their money in savings accounts or savings accounts. She invest rather in their companies or look for profitable forms of investment such as shares. This first insight was joined by a second one: It was and is very important for rich people to Control to keep their wealth. They don't give these to a banker, they decide even about the right ones Strategies.

However, you then have to decide for yourself which strategies suit you or what you focus on. Nobody can relieve you of this responsibility. After all, you are already on the way there; this book is an important first step. You will find different approaches that illustrate the range of possibilities. This text aims to help identify opportunities as well risks of the stock exchange and to be able to invest strategically against this background. After all, the secret of successful stock market strategies consists only in making profits with the majority of transactions and minimizing losses. Anyone who manages to do this will most certainly become financial Success have. And that's what it's all about for me: I want to convey this security to you and show that it is related to personal know-how. After all, most of us don't make our money that way lightthan that they loose it on the Head could hit.

Why it is important to be rich

In addition, in recent years it has become increasingly clear that we even have to be rich if we want to go to the Future look. After all, we live in one Welt with a lot of imponderables and a steady redistribution from arm to arm Rich. In this situation, financial freedom also means personal freedom, and this is very important to me. Creating wealth, however, requires strategy. Getting there requires time and know-how as well as perseverance - at least that's what the examples I've looked at show. They also make it very clear that all aspects of money are somehow related. Earnings, consumer behavior, wealth structuring, taxes and much more must be optimally coordinated so that significant wealth accumulation can take place. A comprehensive financial concept therefore seems important to me, which is also why this text is not exclusively devoted to the stock market and the appropriate strategies. It also sheds light on the trappings and goes into the personal and structural requirements that are mandatory for stock market success. Because unfortunately that's enough Background not about promising strategies, you have to (be able to) apply them.

Many public and private discussions revolve around the desire to have money. Almost everyone dreams of being rich. However, in my opinion it doesn't matter whether you want to or not. Rather, we have to get rich, we have no other choice. This claim may seem a bit far-fetched to you, but unfortunately it has a very serious background.

The pension is not certain

Because the social and economic structures of our Society have changed dramatically in the past few decades. The promise of lifelong stability through a good Vocational Training, a secure job and an adequate one pension applies less and less. Even today, many people need two or three jobs to make ends meet. And more and more frequently, our payments to the pension funds will not be sufficient to ensure an adequate level of retirement benefits later on. There are also other challenges: we are getting older all the time, and this means that the pension period is increasing dramatically.

However, the western industrialized countries hardly adapt their statutory pension systems to these changes. The development described is thus intensifying. Given this situation, it is hardly surprising that we hear constantly about the importance of private supplementary pensions. But the meager approval rates for Riester, Rürup & Co. show how little the Germans think of these offers. And in fact, many studies show that their income is rather moderate - the low interest rate level and a wide range of fees say hello. The question of the meaning of the advertised products is therefore quite useful, and it doesn't hurt if we look after Alternatives look around Realistically speaking, we will increasingly have to live off our savings or the income from our assets if we don't want to noticeably reduce our standard of living. And this conclusion means nothing other than that we must be or become rich.

Gut feeling doesn't help

This logic may give some of you a lump in your throat, but the previous lines sound worse than they are. After all, we usually don't have to break anything over the fence; and most of you will have at least a decade of work ahead of you. During this time there is an opportunity to proceed step by step and pursue wealth accumulation strategically. Unfortunately, we are faced with this task Problem: Such thinking is very abstract, and human beings are not sufficiently prepared for it biologically and emotionally. Most of us find it difficult to calculate long-term returns and derive an investment strategy.

It is therefore very important to switch off your gut instinct and to translate the "I will get rich" resolution into a concrete plan. For this reason, this text not only contains stock market strategies, it is also devoted to inner attitudes, giving a lot of space to feelings and psychological processes. Please do not dismiss the soft factors as "fuss", keep listening to yourself as you read the corresponding chapters and think about how your career as a stock market player has gone so far.

Bad financial strategy - counterproductive decisions

Who visites Honestly deals with himself, is likely to encounter numerous situations and decisions that were downright counterproductive. In addition, a closer analysis should usually show that the wrong strategy was not responsible for losses, but the lack of any strategy or the violation of one that had already been decided. Healthy self-criticism never hurt anyone. The reassuring thing about discovering your own mistakes is that you can avoid them in the future and the imperative to get rich will lose its terror. In this process of clarification, we have to face another important point again and again Eyes to lead. Accumulating wealth isn't child's play and someone lurking around every corner who wants our money, but we can create our own way to get there.

Nobody tells us how we invest, how much we save or in what period of time this has to happen. So we have a great deal of freedom, but we have to use it on our own responsibility. This is exactly where the rub lies. Our psyche often tends to shift the blame away from us. Too often we settle down with issues beyond our control: "I couldn't make any profits, the overall market crashed." Or: "I had to take care of mine." Mother take care of.” All of these are for sure good reasons, but they don't help - especially since there are always suitable excuses for Hand are. Instead, we should focus on things we can influence. And we have to find the individually suitable way. This book therefore shows very different strategies. Some take little time and others allow or require daily intervention. And because the stock market is a two-way street, it covers ways to profit from both rising and falling prices. Fortunately, there are ways to take advantage of any situation and any conceivable environment. At what point in time we take which direction depends entirely on ourselves. Every individual must have this decision fell. Focusing on the aspects of your wealth that you can control is what drives getting rich. With that, the word "must" from the previous paragraphs loses much of its fright.

Rich people don't have to work for money

Being rich enables us to make a change: we no longer have to work for our money, we let our money work for us. But how can this task be accomplished? After all, interest rates are at record lows and many properties cost more than they will ever earn. But you should also take this opportunity to listen to yourself and look at the asset class that suits you best and that you know best. If you prefer real estate and have had good experiences with it, stick with it. If you are not sure, analyze the options before investing. I made this decision, my favorite is clearly the stock market. For me, it offers the best and safest way to generate wealth. Many readers may find the word safe in connection with the stock market rather absurd. Equities are considered speculative and unsuitable for secure financial investments - especially in comparison to savings accounts or fixed-income forms of investment. That this classification is yours weaknesses has, however, shows fast with a look behind the scenes money. It should be clear to everyone that (cash) money only represents an attribution of value. The decision that we can buy certain equivalent values ​​for a euro or a dollar lies with the central banks and thus ultimately with states or governments.

History has shown often enough that this attribution has not always worked. Many currencies have already lost their value completely, and even today there is a permanent, creeping loss of value - in the form of inflation. Interest rate of XNUMX percent with an inflation of XNUMX percent means nothing more than a yearly depreciation of every bank note and every coin of XNUMX percent. Cash and savings accounts are obviously not that extraordinarily safe after all. Anyone who deposits money or gold in a safe deposit box can also fall for it. Because in the event of a bank failure or if the government decides on certain restrictions, access can be denied. Unlikely? Think Cyprus, such Measures even existed within the EU. Incidentally, there is no such thing as XNUMX% security with bonds either. These are based on the promise to repay the borrowed money within a certain period of time and also to pay interest on it. Whether this will actually happen can hardly be guaranteed in advance. This warning is particularly valid against the background of exorbitantly high government debt worldwide. Because the indebtedness does not only affect the much scolded »Southerners«. On the contrary: the USA and Japan in particular have piled up worrying mountains of debt.

The first basic rule: There is no such thing as a safe investment!

What about stocks or other publicly traded securities? Of course there are dangers. But have Companys like Siemens or BASF have a longer history than the euro or the D-Mark; they have survived crises and world wars. 100 Reichsmarks or a German government bond from 1923 have long since become worthless, but Siemens shares have been traded since 1899 and still represent value today. The reason for this resilience: While money merely represents values ​​and requires a consensus on this attribution of value, shares do concrete material assets. After all, (almost) everyone has their own property Company about buildings, production facilities, goods and much more. The shareholder owns a portion of it, and it is not so easy for governments to dilute or even confiscate that ownership.

So security is always relative, regardless of whether it is about the savings book or a share. I did not include gold or other precious metals in this comparison. These are considered to be a safe haven, especially in times of crisis, but in my opinion they have a serious disadvantage: They do not bring any returns, they do not work for us. In addition, it is difficult to forecast an increase in the value of gold & Co. They will therefore hardly make a significant contribution to wealth accumulation. From my point of view, stocks are particularly suitable for creating or increasing your own wealth.

The attitude counts

This also applies because they can be obtained very quickly, easily and inexpensively. A deposit at a bank and a click of the mouse are enough, and the desired share is already ours. This makes it clearly superior to other investments in real assets. For real estate or Art for example, valuation, purchase and settlement are much more complicated. In addition, there are usually very high transaction costs. For shares, on the other hand, there is always a clear price, and the valuation is absolutely transparent. We can exactly understand supply and demand at any time. Shares can also be bought at almost any time as well merchandise, and with just a few euros in fees, we are there.

The general conditions for trading on the stock exchange are very good, but most Germans shy away from stocks and the like, and many are frustrated due to a lack of success. Above all, false expectations and an unsuitable attitude are responsible for this negative image. Many of us need to make a change first. So it is helpful if doing money is fun. Of course, this fun cannot simply be prescribed, but the potential and results of the strategies described in this book are quite impressive. And on this basis, your own consciousness often changes. Each of you should also be aware that neither the creation of wealth nor the change in your own attitudes can be achieved overnight. If you don't want to give up in frustration again soon, you should proceed slowly and rely on realistic milestones. With the first successes - even if they are only learning successes - it grows Motivation for the further stages. In this situation, however, many of you will encounter certain reservations from those around you.

Asset accumulation: a matter of time

Because a certain aversion to money matters is widespread, and dealing with it is considered a necessary evil by many people. But they prefer to suppress this unpleasant task. But we are often confronted with far more extreme attitudes: money is not only considered gross, many people even express the conviction that they don't have time to worry about their investments. In these situations, however, the question arises for me, why does someone want to earn more money in addition to personal needs. If you don't have a plan for it, you don't need any additional income. Because the money will disappear again anyway. "Things" only grow in the desired direction if we take care of them. This applies to potted plants and children as well as to our assets.

And more Ask result from the supposed lack of time: how many hours a day does each person spend at work? And what is the cost-benefit ratio? Let's assume that eight hours a day results in an annual income of 50.000 euros. So the time commitment is enormous, we spend a third of our lifetime at work. Investments are much more effective. Those who have learned to achieve a reasonable return can generate high income with just a few hours per week or month. And supposedly there isn't enough time for that? This argument seems absurd to me. The settings described mean that the savings remain with the house bank, the Adviser select a few funds and the bottom line is a return of two or three percent per year.

The finance license: If you start without knowledge, you make mistakes

But when it comes to investing, it's the same as when it comes to taxes: if you hand over responsibility for it, you literally have to pay for it. A sustainable and noticeable wealth accumulation is as good as impossible, the two or three percent return mentioned will hardly be enough. Who his classic sources of income like salary and Co. in the long term and noticeably, therefore needs alternative ways. Strategies are needed to better invest one's own savings. There are, but they require know-how and the willingness to deal with the subject of money. You have to be willing to sacrifice your time for it. I mention this willingness explicitly because you will hardly be successful if you don't have the right attitude towards investing. This is also true because it is downright chic across all social classes to flirt with one's own ignorance of mathematics. When it comes to literature, history or music, most profess to be educated, but at the same time many of these people have no problem playing the math loser. But who, out of sheer anti-math arrogance, misses the supposedly surefire Suggestions of your own financial adviser or banker should not be surprised if your own portfolio is in the red.

Basically, investing money is no different from driving a car or laying tiles: Anyone who starts without the necessary knowledge makes mistakes. It is not for nothing that we are only allowed to drive with a driver's license on tax sit, and every craftsman goes through an apprenticeship for a few years. Also wealth building and that Commitment on the stock exchange require work and know-how. The Term »passive income« unfortunately does not apply. The more success or return you aim for, the more effort is usually required. That's why you should decide at the beginning of your stock market career which goals you are striving for. In what time frame do you want to save which assets? How much time can you spare for this per day, per week or per month and what amount can you start with? In addition, there is another central set of questions about activities on the stock exchange - this also exists in connection with all other transactions: Do you know the risks and do you want to take them? The answer to these questions will determine which financial strategy is right for you.

Analyze your financial behavior

Before every transaction and everyone Shop so stands the introspection. We need to look inside ourselves and ask ourselves what makes us tick when it comes to finances. Please be honest with yourself! All enthusiasm for a strategy from this book and all noble goals are of no use if the necessary consistency is followed Implementation is missing. The euphoria almost always ends in frustration, and in the end there is less money than at the beginning. I would like to emphasize one thing again: I do not make any judgments when analyzing the behavior. It's not about whether, say, spending money is "good" or "bad." In this book, I'm just showing ways that you can use the stock market to make more money. And I make all conclusions against this background: Is a certain behavior suitable for accumulating wealth? And the main thing is to find the right path for yourself. You can find information about your own attitude and your own relationship to money in your actions over the past few years. This is often where it gets exciting and frustrating in equal measure.

Have you ever carefully observed and analyzed your financial behaviors over a period of two years? The income side is usually quickly described, salary and perhaps capital income can be identified without any problems. It is far more difficult, but also more enlightening, to look at the expenditure. Because this provides information about how you tick financially. Anyone who does not achieve a savings rate despite reasonable income and who also lack reserves is guaranteed to have difficulties in accumulating assets and should analyze how this situation can be changed. On the expenditure side, there are often »skeletons in the closet«, for example long-term supply contracts or subscriptions to facilities that have long been unused.

Your personal income and expenditure account

In such cases, it is helpful to write down all the expenses for a year - please on a piece of paper so that it is visible in black and white - and to check them very critically. Even if you can only save 50 euros per month, this step is an important start to a heightened awareness of money. The attitude is changing! You can define goals and develop yourself further. Because one thing is very important: if you start small, you don't have to end small. And like everything in life, you have to learn how to handle money. Unfortunately, financial know-how is neglected in our society, although money plays a central role. Learning units on the basic principles of housekeeping or on the mechanisms of money and banking are almost completely absent in school. That is why we are mainly shaped by what we experience at home and from our immediate environment.

In addition, we rarely question these learned behavioral patterns and act automatically in the same way as our environment. We can hardly get out of our skin when it comes to money, no matter what the current situation is. Incidentally, various studies on lottery winners throw a spotlight on these mechanisms. gewinnen "poor" people large sums, 100 percent of these flow into consumption, and all the dreams are gone very quickly. Afterwards, these people are poorer than before. The strategies on how to keep a fortune are simply missing. But these are precisely what are absolutely necessary if we want to become and then remain financially independent.

The second basic rule: We can learn a lot from the rich!

The background of experience mentioned is also very strongly determined by emotional factors, for example fears influence us Behavior in terms of money. Because this influence is very large, this book contains a separate chapter with a comprehensive insight into the Psychology the stock exchange. A look at the behavior patterns of rich people is instructive in this context. On the one hand, they attach great importance to investing their money. And a Investment does not consist of a fancy car or the latest smartphone. Investing means investing your own money in such a way that it generates income. On the other hand, the rich structure their money in such a way that an increase in wealth is possible at all. They try to create the best possible conditions for this.

Almost all wealthy people have, for example, companies, corporations or foundations. In this way, for example, the tax potential can be exploited and Costs sell much better. Where, for example, a car or telephone burden private assets, they reduce the tax burden in the company and thus even increase it positive Effects. In any case, it is possible to structure a large number of expenses in a tax-optimized manner and thus reduce personal money requirements. If you only "divert" as much as you need to live and invest the rest, you will usually achieve considerable wealth growth very quickly. Becoming financially independent with the help of the stock market - or other investments - requires the right framework and the right attitude. And this encompasses the entire behavior of each one of us with regard to our own finances. If we don't continuously optimize our income and expenses and don't know the financial mechanisms behind them, a lottery jackpot or a share price explosion will not help much.