Mirror, Mirror On The Wall

According to almost every expert, the most important asset you have is you. Van K. Tharpe in his book, Trade Your Way to Financial Freedom, emphasizes that “You are the most important factor in your performance…you cannot design a system that is right for you unless you know something about yourself.” Much of your personal success is born out of an understanding of the type of person you are.

Before you jump headlong into investing money all over the place, it’s wise to have an understanding of where and why you should invest your money depending on how you’re going to make decisions.

For those of us who can be a bit lazy, for instance, it’s good to go with long-term plans that don’t require you to check back in on your money very often, such as a money market fund. If you’re aggressive and like the idea of keeping constant tabs on your investments, dropping things that aren’t performing and adopting things that will continue to perform better, jump into the stock market. For those who are getting a bit older, it’s best to invest in bonds that are not volatile, and increase your money at a standard interest rate. For those who are young it’s best to invest in elements with aggressive growth that may be a little shaky, but give a better long-term return on your money.

BONUS TIP: Take an online personality test. They’re usually free, and it’s fun to discover your results—you may learn something about you that will reflect the type of investor you'll become.