By Jason Fittler
Rags to riches… is a story we have all been told since we were little. What you need to keep in mind is that they are fairy tales. Let look at the facts:
1. Wealth is earned; the story behind wealth is one of hardship, sacrifice, failure and success. There has never been an easy path to acquiring wealth.
2. Wealth which is won or inherited is lost quickly. Most lotto winners are poor again with in 3-5 years. Inheritances are spent quickly.
3. The harder you work the wealthier you become, the majority of you wealth will come from savings.
4. There are no get rich quick schemes, unless of course you are the promoter of the scheme.
Millionaires all have similar behavioral patterns when it comes to making and building their wealth. It is their beliefs and behaviors, which makes them millionaires. If you want to be a millionaire then you will need to develop the same beliefs and behaviors.
Sounds simple, let me assure you it is not. Change is hard and very few are willing to do what is necessary to change. Are you willing?
1. Know that not every investment will make you money, some will lose you money.
2. Understand that there is no perfect plan, “A good plan today is better then a perfect plan tomorrow”.
3. Be aware that investment strategies will have to change depending on the economic situation. Never be afraid of change.
4. Do your research; if you do not fully understand then do not invest.
5. Do not play the blame game, focus on what needs to be done to improve performance.
6. Have a long term view of investments, 20-30 years.
7. Work hard, put aside money on a regular bases. Regular small investments grow quickly due to compounding.
8. Have a good relationship with your advisors.
9. Make decisions, you need to consider all aspects of every investment before you invest. So if an opportunity presents itself take the time to consider it straight away and make a decision. Do not put it off.
10. Never count your losses; focusing on the losses takes you away from focusing on the next opportunity. You will never go anywhere if you always look backwards.
There is a lot more to learn and understand. If you honestly assess your self against the above 10 points I bet there are at least a couple or arrears you need to work on.
If this note has offended anyone, please understand that this is not my intention. My intention is to educate people on how to get where they want to go.
Self reflection is always hard.
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