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People who know how to build wealth invest their money in assets that supply them a steady stream of income. They follow a simple investment guide: avoid debts, start investing early and stay invested for a long time. You too can reap dividends if you adopt the following investment strategy:

1. Choose a financial adviser: There is no better friend than a good financial advisor. He can tell you how much to invest, when to invest and where to invest. Of course, you have to be careful in choosing a financial advisor. Don’t go by reputations, but insist on seeing results. You should not keep any secrets from the financial advisor. Inform him of your goals, and let him decide.


2. Organise your finances and work out your investment budget: This is critical. You must know how much you can spare for investment each month. Don’t overshoot this amount.

3. Start investing and stay invested: You don’t have to be wealthy to be an investor, but you have to be an investor to be wealthy! Always define your investment goals before investing.

One of the keys to successful investing is identifying your investment goals. Another important decision is the time frame for which you will invest. Don’t panic, and dump your investment when the market crashes. Be prepared to stay invested for the long-term.

4. Diversify your investments: The market is never stable. Some investments perform better than others in certain situations. When one industry struggles another may prosper. Putting your money in a diverse set of investment options can help to reduce your risk.

5. Retain your capital: The key to wealth accumulation is retaining your capital. Of course, if you stop working later in life, your strategy may change. At that point it is then beneficial to start drawing on some of your capital as well. However, you must ensure that it will last for as long as you need it.

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