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Eight Investing Rules You Need To Follow To Make You Rich

Eight Investing Rules You Need To Follow To Make You Rich

Investing is like training for a marathon. Both require discipline, focus, determination, balancing risk and safety, and long-term vision. These investing rules have been tested and proven effective by generations of investors. Many people from every kind of background have followed these investing rules to wealth … which means that you can, too.

1. Start early and invest regularly

Start early

Warren Buffet once said, “If, when making a stock investment, you’re not considering holding it at least ten years, don’t waste more than ten minutes considering it.” Think of investing as training for a marathon. If you’re a couch potato, you can’t start running the week before the race and expect to win. Not only will it take a while to get in shape; you’ll need to be able to weather some injuries, illnesses, and other setbacks before race day.

Keep in mind that the longer you invest, the more you take advantage of compounding interest, and the more money you make long term. If you like numbers, just for fun, pull out a spreadsheet or calculator and start tinkering with the Rule of 72, which states that if you divide 72 by the annual rate of return, you get the number of years it will take for your investment to double in value.

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Invest regularly

If you want to run a marathon, you can’t just go out there and run a few miles once in a while and expect to see much improvement. Regular training, and regular investing, is key. If you try to do all of your marathon training at once, you’re almost guaranteed to injure yourself, and the same thing can happen if you dump a whole lot of money into one bad investment.

One nice aside about this investing rule is that you can take advantage of some nifty tax breaks every year by showing the IRS that you’re making regular contributions to an IRA or other retirement fund.

2. Choose your asset allocation — your marathon training program

Asset allocation” is the process of deciding what kinds of investments you want to make. Different investments behave differently and yield different amounts of money in the short- and long-term, and — just like marathon training — there is no one-size-fits-all investment strategy for everybody. Finding a balance between risks and rewards is a moving target that depends on a lot of variables.

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There are three traditional asset classes: equities (stocks), fixed-income (bonds), and cash and equivalents (savings accounts, certificates of deposit, money market funds). Stocks have historically yielded the highest returns for the greatest risk of the three asset classes. They’re the sprints of the marathon training world: they’re going to increase your strength and stamina the most, but will also put you at the highest risk of injury. Bonds are the middle-ground investments. They’re like tempo and other lower-intensity interval training; lower risk of injury, but also more modest benefits. Cash and cash equivalents are your steady-state running sessions and endurance miles. You’re not too likely to hurt yourself — or lose money — but they’re also going to yield the smallest returns for your effort.

3. Rebalance yearly

Rebalancing is the practice of periodically evaluating your portfolio — your “training program” — and making any tweaks to the balance between high- and low-risk investments. You could rebalance more often, but the consensus seems to say that a year gives you long enough to see how everything is doing over a longer period of time. Plus, it gives you a regular date to write in your calendar. ‘Nuff said.

4. Keep costs down

“The goal of the nonprofessional should not be to pick winners … the ‘know-nothing’ investor who both diversifies and keeps his costs minimal is virtually certain to get satisfactory results.” — Warren Buffett

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This is actually a pretty simple concept. The less you’re paying in “overhead” — fees, taxes, or heavy shoes — the more of your money (or energy) you get to keep and reinvest. Also, lower-cost investments tend to perform better than their higher-cost brothers and sisters. You don’t see too many marathoners wearing combat boots. Which brings me to the next point:

5. Make index funds the core of your portfolio

Index funds are a type of mutual fund that is built to mimic the performance of a market index such as the S&P 500. One of the features of an index fund is — you guessed it — low cost. In addition, index funds are intrinsically diverse. They include a range of high-risk and low-risk investments, all put together by professional folks who know what they’re doing and have already done all of the hard work and research for you. That’s pretty hard to beat.

6. Focus on your goal, which is to make money

Remember, this is not casual running; you’re training for a marathon. You’re not just playing with your money; you’re moving toward riches. As tempting as it might be to invest in the latest bright-and-shiny, new moneymaking concept, or to tinker with new and cool marathon training theories, if you’re just starting out, you’re better off following the investment rules set down by the generations of investors and experts who have already made the mistakes, done the research, and come up with strategies that work. After you have a nice cushion of money or a few marathons under your belt, it’s probably fine to do a little experimenting, but until then, keep it safe.

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7. Don’t try to outperform the market

This is one of my favorite investing rules. If you’re running or investing at all, you’re already ahead of 99% of the population, so relax and don’t try to outfox the market. You can’t run any faster than you can … and you can’t force your investments to perform any better than they can.

8. Don’t spend your principal

This is probably the most obvious of all of the investing rules, but once you’ve invested your money, keep your hands off of it. Spending your investment is like skipping training. You aren’t going to get ready for that marathon if you don’t run, and your money isn’t going to gather interest if you spend it on anything besides your investments.

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Last Updated on July 4, 2019

25 Killer Sites For Free Online Education

25 Killer Sites For Free Online Education

Whether you’re five or ninety five, the internet has a lot to offer. Particularly when the topic is education, the resources on the internet are endless.

Best of all, many high quality sites are completely free. From history to coding, excellent free online education awaits on the following 25 sites.

1. Coursera

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    Coursera is a website that partners with universities and organizations around the world. This brings a wide variety of topics and perspectives to one searchable database.

    Coursera is a powerful tool for free online education, and includes courses from many top universities, museums and trusts. This gives the site an extremely wide range of in-depth courses.

    Coursera is extremely useful if you’re looking to study many different topics, or want courses from different schools and groups.

    2. Khan Academy

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      Partnering with many post secondary schools, Khan Academy offers a useable, well organized interface. Also curating many courses from around the web, Khan Academy offers impressive depth on many different subjects.

      Among the more well known educational sites, Khan Academy is also incredibly useable, which may make it easier to keep learning goals.

      3. Open Culture Online Courses

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        If you are struggling to find exactly the material you are looking for, try Open Culture’s listing of free online education courses. The page highlights 1000 lectures, videos and podcasts from universities around the world. The site features a lot of material found only on universities private sites, all in easy to browse categories. This means you can find hundreds of university courses, without having to visit and search each university’s own site.

        Open Culture’s list features courses from England, Australia, Wales and many state universities around the United States. A very helpful resource for finding many courses in one area of study.

        4. Udemy 

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          Udemy’s free courses are similar in concept to Coursera’s but additionally allows users to build custom courses from lessons.

          Working with many top professors and schools, the site mixes the customizable platform of other sites with a heavy emphasis on top quality content. This is another site however, that mixes free and paid content.

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          5. Academic Earth

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            Another site with courses from many different schools is Academic Earth. Much like the three sites above, Academic Earth brings together top notch courses from many different sources, and focuses on offering a wide variety of subjects.

            Academic Earth lists courses by subject and school, so it might be easier to find what you’re looking for.

            6. edX

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              Another great option for free online education is edX. Also bringing together courses from many different schools, the site has impressive, quality information for everyone. edX covers a great range of topics.

              7. Alison

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                Unlike the previous sites on this lists, Alison is a free education site offering certification in some areas. Alison offers courses mainly in business, technology, and health, but also includes language learning courses.

                It’s a great option if users need certification for their learning as Alison also offers school curriculum courses.

                8. iTunesU Free Courses

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                  A very convenient place for free online education is iTunesU, because it integrates seamlessly with your iPod, or any app-ready Apple mobile device. On iPad, iPhone, or iPod touch, users download the iTunesU app.

                  Desktop users can access  iTunesU on the upper right hand corner of the iTunes Store. iTunesU is also convenient because the store is categorized much like iTunes.

                  Users can search learning materials in many different ways, including genre and topic. However, courses are often a mix of free podcasts or videos, and paid content.

                  ITunesU does include courses on a pretty wide scope of topics, but does not integrate with Android, Google or Windows mobile devices.

                  9. Stanford Online

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                    Your hub for all the online offerings from Stanford University, Stanford Online offers self-paced and session based courses. While Coursera features some courses from Stanford, many classes are only available via other hosts. Some courses require iTunes, but most are completed in your web browser.

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                    Stanford Online is a great site for high quality courses, though the topics are somewhat limited compared to sites partnered with more than one school.

                    10. Harvard Extension

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                      Like Stanford Online, Harvard Extension features free online education courses from Harvard only. This is another excellent source for top notch course material, though the course variety is less rich than multi-school sites.

                      Additionally, Harvard Extension allows you to search for courses by professional certificate. This makes it much easier if your online education goal includes certification.

                      11. Open Yale Courses

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                        Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.

                        12. UC Berkeley Class Central

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                          Much like the other schools on this list, UC Berkeley has a variety of free online education options. The school has slightly fewer courses than the schools above, but includes some supplementary lectures, webcasts and RSS Feeds, making it easy to keep up with the topics you choose.

                          13. MIT OpenCourseWare

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                            Similarly, MIT offers a variety of free courses. The school has a comparable number of courses to the schools above, plus includes very in-depth course materials on the subjects available. MIT also offers free RSS feeds, a convenient way to continue learning.

                            14. Carnegie Mellon Open Learning Initiative

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                              Carnegie Mellon’s free online education site is comparable with the other school’s on this list, however, Open Learning Initiative also covers a smaller range of topics. But for the topics that are covered impressive, in-depth material is available.

                              15. Codecademy

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                                Codecademy is a website dedicated specifically to teaching coding. Where other coding sites follow an example/practice session workflow, Codecademy includes a live practice window. This means you can practice coding while still viewing the lesson material.

                                The courses at Codecademy are well written and easy to follow and the website is organized very nicely. Codecademy features a centralized dashboard where you can monitor your progress, plus organizes lessons into complete modules. This lets you learn an entire language without needing to pick the next course manually.

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                                16. Code

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                                  Code is another website focused on coding and app writing. A site with high quality courses, Code also features learning options for kids.

                                  In addition to kid friendly courses, Code offers free online education classes on a wide variety of technology topics. These classes include app writing, robotics and Javascript.

                                  Most of the courses are also geared in a such a way that they can be useful in a classroom setting. This makes Code a great resource for harder to find coding topics, as well as various learning settings.

                                  17. University of London Podcasts

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                                    The podcast page on the University of London website is another great source for free education. While the courses are limited to podcasts, the site features podcasts from it’s own campus, as well as eleven universities in and around London. This gives learners a wide base of topics and lectures, but still ensures in-depth material.

                                    18. University of Oxford Podcasts

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                                      Similar to the University of London, the University of Oxford features many different podcasts. Most are public lecture series or lectures from visiting professors, with several different recordings available.

                                      The advantage to this particular site is that podcasts are organized into series, making it easy to subscribe to multiple lectures on one topic. Another good site for thoroughly in-depth lectures.

                                      19. BBC Podcasts

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                                        For the more casual learner, the BBC offers a wide variety of podcasts on many different topics. Most podcasts are updated weekly, and focus on everything from finance, to sports, to current events.

                                        Through the World Service line of podcasts, there are also many in different languages. The focus of these podcasts are less in-depth and theory based, which may be more accessible to the average person.

                                        20. TED-Ed

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                                          Another great destination for more general learning is TED-Ed. From the same people that brought you the all encompassing, motivational web series, comes a site chocked full of educational videos. Most include impressive animation, and all are ten minutes long or less.

                                          Not only is TED-Ed an excellent site for the curious, it also includes supplemental materials and quizzes on the videos. This makes the site extremely useful in formal education settings, as well as in entertaining ways to brush up on new discoveries and topics.

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                                          21. LessonPaths

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                                            LessonPaths is another great tool for those looking for a more usable and convenient way to access learning material. On this site, users create link playlists of their favorite learning materials from other sites. Users then rank these collections, making it easy to find many different high quality, accessible sources on a given topic.

                                            22. Memrise

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                                              Another impressive free online education site offering ease of use and convenience is Memrise. Available both on desktop and as an app, Memrise is a particularly powerful tool if you are studying a language. The site encompasses many other topics as well, though some of the course material is user generated content.

                                              Part of what makes Memrise special is their integration of games into the learning materials, mixing learning with entertainment.

                                              23. National Geographic Kids

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                                                The kids site for National Geographic is another site that makes free online education applicable for younger users. For those looking for kid friendly education, a large variety of games, puzzles, videos and photos keeps kids interested on this site.

                                                National Geographic Kids doesn’t organize learning into courses, making materials available by topic and medium instead. This makes National Geographic Kids a good option for those looking for a more casual learning environment.

                                                24. Fun Brain

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                                                  Fun Brain is another good option for kids who want to learn online, but focuses on games and fun puzzles. Particularly focused on math and reading, Fun Brain’s game based approach can be valuable if the child in question struggles to pay attention.

                                                  Fun Brain offers rewards and challenges as well, and is another site aimed at a casual learning experience for kids K-8.

                                                  25. Whyville

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                                                    Similar to the sites for kids free online education is Whyville a destination for preteen online learning. The site includes a variety of social features, with a focus on learning materials geared for young teens.

                                                    Whyville also mixes in educational games, to make the site a well rounded option for kids too old for simple games, but too young for heavy reading based material.

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                                                    Featured photo credit: Dai KE via unsplash.com

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