Our General Rules for Investing
As a smart investor, you need to set a number of rules and guidelines for yourself to which you will adhere.
Here are our rules.
- We do not invest in individual stocks but only in index funds and low-cost mutual funds with a good track record.
- We only invest our savings that we do not need for at least 5 to 10 years. We never borrow money to invest in the stock market.
- We limit our exposure to foreign markets/currencies that show a declining trend to our home currency to a certain percentage of our overall savings that we have earmarked for investing in the stock market.
Read here more about how we handle and which free tool we use for Money Management.