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5 Terrific Tips for Investing Wisely

I promise. You don’t need a boat load of money to build wealth. What you do need is to:  Spend less; Save more; Invest wisely. 

The first two are self-explanatory. Investing, however, is where most people trip up, which is not surprising, given that there’s an entire industry dedicated to making investing sound difficult and confusing.

Let me share with you 5 tips that really helped me finally understand investing (with links to learn more).


There are only 5 places to invest (called asset classes)—stocks, bonds, real estate, cash and commodities. Your first task is to learn the difference between these assets classes.


Cash in the bank, or under the mattress, may feel “safe.”  But long term, you’re putting yourself at great risk. To ensure you don’t outlive your money, at least a portion needs to be in assets that grow faster than inflation and taxes take it away. If inflation averages 3% and your money is sitting in an account paying 1%, your buying power will significantly shrink over time. (Why Cash May Not Be as Safe as You Think)


This rule explains how long it will take to double your money—by dividing the interest rate or compound return into 72.  Let’s say you own a fund that returns 8% annually. 72 divided by 8 equals 9…so it’ll take 9 years to double your money. Put that same amount in the bank, paying 1% interest, it’ll take 72 years to double. (Rule of 72 Definition & Example | InvestingAnswers)


It’s true, the market, like a roller coaster, feels really risky. But price swings only matter when you sell.   To significantly diminish the risk of loss and increase the potential for gain:

Have a longer time frame. Money you need is less than 3 years should be in cash. Everything else should be invested. The Importance Of Time Horizons For Investing (And Beyond)

Be well diversified, spreading your money among different asset classes.


The whole point of investing is to make sure your money is adequately allocated to meet your short and long term goals. To figure out the best diversification for you, consult a Fee Only Certified Financial Planner.  Start with:

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Comments & Feedback

  • Linda Lingo

    You are right on target, as usual. You make investing very “user friendly” and easy to understand. Thanks for the timely information.

  • Brittany Farley

    Oh my… I am currently listening to your book Sacred Success while I drive to work, and this was the chapter I listened to today! I’m taking this as a sign from the Universe to take note and listen up.!! Thank you for sharing your wisdom!

    • barbara huson

      Thanks so much for your comment, Brittany. I love when the Universe sends me signs like you got! Hope it works for you!

  • Anna F

    Love this post – key areas of investing I’ve been chewing over, with the resources I needed to take the next step!

    • barbara huson

      That makes me so happy, Anna, to know I could condense it down for you and it was helpful! Thanks for letting me know!

  • Caroline

    I have not yet heard of the rule of 72! Barbara, I cherish each one of your emails. You are one of my “Way-showers,” and I thank you for your powerful work in this world.

    Much love!

    • barbara huson

      Oh I’m thrilled you learned something new Caroline!!! Thanks for your sweet note…made me feel so good to know I’m your Wayshower!!! What an honor!

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Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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