How do you increase the rate of return?

How do you increase the rate of return? I found that this article which wrote by klcau is great enough to illustrate the mental attitude of the young people looking for high rate of return blindly without considering risk and scam.

This is the summarize main point

1. Return rate doesn’t matter when you are just starting up

When you are just starting out, make sure you learn along the way. Accumulating a useful sum of capital, getting educated about making deals, and spending time finding those deals are more important then the rate of return. Imagine that you only have one thousand ringgit investment capital. It won’t make a difference if the return rate is 5% or 20%.

2. Higher return doesn’t mean higher risk

You can in fact get high return by staying low risk. The key is leveraging and control.  

 

3. Return is not only in monetary form

Don’t ever laugh at those people who have a lot of fixed deposit in banks. You may say that they are letting their money depreciate because inflation will eat up their return in the long term. But at the time when cash is king (during recession), they are the one who have the largest amount of financial bullets to make a killing. These people are smart enough not to get emotionally involved in the market sentiment.

There are some people invest not only for monetary return. They invest for knowledge, for self development, for better relationship, and also for relaxation of mind. These people invest money by buying books, attending seminar, going oversea for vacation with the whole family. They see this kind of spending as investment too. These intangible returns are hard to be measured by numbers. Nevertheless, those items are considered investment too, even though the return is not in monetary form.

 

So, exactly how can you increase the rate of return?

Ignore the return rate when you are just starting to accumulate the first significant investment capital. The key is to save hard and learn smart. With enough experience, you will learn to make higher gain without taking higher risk unnecessarily. Finally, you will get the best return not only in financial form, but also self-improvement and balance life.


quoted from kclau.com.

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