What do I think about this claim? I personally think if you do not know how to analysis companies and do not how to diversify your own portfolio with different stocks then you should buy into mutual funds. Mutual funds are a super simple way for anyone to automatically diversify their portfolio. So, if you do not know what you are doing when it comes to investing and picking and choosing stocks/companies you want to purchase then buy a mutual fund. If you know how to analysis stocks/companies and know how to diversify with stocks on your own, then do not buy mutual funds. It is really that simple.
So, where did I start? I started with the most basic and simplest savings suggestion and the most popular advice I read was the 50/30/20 rule. This guide means you spend 50% of your income on necessary items (house, cars, clothing, food etc.), 30% of your income should be spent on entertainment items (going out to dinner, movies, internet services, TV packages etc.), and then 20% of your income should be put in to savings. (continue reading below)
You probably grew up being conditioned to believe that people who had money were dishonest or they got "lucky". I hate to tell you but you are wrong. Rich Mentality people want everyone to be rich.
So, what are some Poor Mentality common beliefs? Well, the below beliefs may scare you because you, yourself think a lot of them, but don't worry. Having a Poor Mentality does not have to be set in stone! You can change your way of thinking! Just stop, get some help.
Like most of you I had no idea what I was doing when it came to, well, pretty much everything regarding retirement planning and investing. I didn't know anything about the different IRAs available let alone their different tax benefits, mutuals fund/ETFs, what is an acceptable emergency fund, or when to purchase stocks, mutual funds, ETFs, index, or bonds. Did you know when you are investing for retirement you WANT the stock market to DECREASE? I didn't either. Things like this are all within this book. It will provide you with a lot of information and tips which will help you start to build your portfolio.
If past history was all that is needed to play the game of money, the richest people would be librarians.
- Warren Buffett
People often say, "Millennials don't know how to manage money, save money, or that Millennials are ruining the economy because they are not smart with money". When I first heard this I refused to accept that statement. I refused to be seen as a Millennial who didn't know how to be "smart with money".