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Ask Yourself "Do I Understand This?" Before Investing In Anything

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George Mitchell
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A house, a car, a retirement plan, heck even your TV are all investments.

As personal finance site Mom and Dad Money explains, you don t necessarily have to understand every single detail about an entire industry to be able to buy anything, but understanding how something works on a basic level should be a prerequisite to investing in it.

Before you invest in something, make sure whoever s telling you about it can explain it in a way you understand:

I don t care how good something sounds.

However, in any industry there s probably someone out there hoping to make a quick buck off of someone who isn t looking too closely at the terms of their investment.

Taking time to understand what you re investing in isn t just a good discipline, it s protection against being taken advantage of.

8 Questions You Should Ask Yourself Before Investing in Anything Mom and Dad Money via Rockstar Finance

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George Mitchell
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