Based on following the principles of an investment group I have chosen to be a part of for the rest of my life, it's important to allocate savings into appropriate portfolios. I have split it up into three main ones, which is basing it off of making the most sense with what I can.
In a nutshell, having a lot of money makes it really easy to diversify your portfolio and stay safe to make only a small percentage of profit which would still be comfortable to live beyond your means! The saying that the rich keep getting richer sort of applies here, but it's not like you can stay or get rich if you don't save your money and put it into good investments.
It's really crazy how a lot of families are lacking in enough funds to invest, but I call myself lucky to still be single and not be responsible for feeding that many mouths. I think it's been natural for me to try to run away from getting married because I was worried about not having enough money. More than that, there's also dealing with rejections or worrying about the lady not being the person you thought you could enjoy.
A lot of these personal issues were solved from obtaining full self-confidence and inner stability. I'm a pretty demanding person, so it took a lot of hard work and self-awareness for me to acquire it and become happy with myself fully. It's a work of art that I'm proud to have finally achieved! Maybe this is the advice I can give for a dumb friend who is really stubborn about doing well for himself over small incidents and then feeling depressed the next time because life keeps going and he can't reach his goals. I will have reached my own goals by then first and be genuinely happy about it to give enough credibility for him.
For my three main portfolios, I'm doing fair at it while making profit. I literally have a safe one, moderate one, and also high risk and high profit one. The safest one is called the core portfolio which is sitting at 32% of my investment savings. The moderate one is just a mixture of all types of stocks that range from blue chip to slightly speculative in nature and it commands the most at 38%. My most risky one is the smallest but still has a significant chunk at 30%.
Currently, I'm putting in only $1000 a month based on calculating my annual income before taxes. I look to be in this game for a very long time and continuing to improve upon doing well with my most risky portfolio. I'm going to be the most hands on with that one but it also has the biggest ROI potential so it makes sense to get most of my attention.
The core portfolio is pretty much the solid foundation that will build upon my investing and trading career. I feel comfortable with giving my stocks the most monthly contribution so this is how I'm going to roll with it for now until I make a lot of money to the point that I'll be able to invest heavily on expensive mutual funds, actual gold, and bonds while hiring an advisor to collect legal tax breaks!
