- Each financial product you buy must solve a problem you have.
- Do not buy a financial product for any other reason like peer pressure, etc.
- Match your financial needs to financial products
- Each financial product has a certain time period over which it works best. A product that is very safe in the long run becomes very risky in the short term. And a product that works in the short term becomes a drag on returns if you hold it too long.
- Don’t invest in things you don’t understand