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Essential Rules Of Fail Safe Investing

Fail-safe Investing is a popular book written by Harry Browne, an expert financial analyst. This book focuses on the major aspects and rules for financial investment. It aims at achieving lifelong financial security along with additional services. The major rules mentioned in this book are given here for you-:

  • Build your wealth from your own hands- The first rule states that you have to build your wealth from your own career. Investments cannot be the sole source of income. They have to be maintained without hampering the professional work. Thus, in order to ensure progression of wealth, it's very important to build up your own career without being solely dependent of financial investments.
  • Never assume that your wealth can be replaced- The next rule states that never think your wealth is replaceable. You earned because of your positive attitude and favorable circumstances. It was all your skill which made you wealthy. But, if you are thinking that every time conditions will match your need then you are absolutely wrong. Therefore, it's very important to consider that what you at now cannot be replaced under any circumstances.
  • Speculation is different from investment- The next rule explains the difference between speculation and investment. The term "investment" means giving in financial resources and accepting the returns. But, the term financial speculation means giving efforts to beat the returns. It depends on financial analysis, ETF Strategist and ETF Model skills of the speculator.
  • Don't go unrealistic approach- The next rule states that never go on realistic approach to predict future. Expect business as a risky road and use proper skills and realistic approach to handle future market fluctuations. Never predict anything without any reason.
  • Don't expect anyone to work for you- The next essential rule states that you should never expect any individual to make you rich. You may have a financial advisor for investment assistance. He may guide you at every step. But, don't depend blindly on his services. Analyze the situations and give your own efforts to make money.
  • Cash basis is very essential- The next rule from Harry Browne states that you have to operate on cash basis. Accrual basis makes a person broke without giving a single warning signal. It takes away all of his financial resources very quickly. Thus, operating on cash is considered much better than borrowed money.
  • Take decisions on your own- The next essential rule which will guarantee efficient returns is self investment. No financial authority or investment expert can bring success at your feet. They will work properly but their concern for money will not be as high as yours. Therefore, leaving financial decisions on other individuals will not assure profitable returns for you.
  • Speculate with money you can lose - The next essential rule states that speculate with money which you can lose without any problem. Speculation can give better results but it involves more risks. You can lose your finances much easily. Therefore, always invest with those resources which you can easily afford to lose.

So, these were some essential rules from the book Fail Safe Investing. This book is an essential medium to learn the correct techniques of profitable investment.