Want to build wealth by investing? Try the following:
- Learn so that you are not going the repeat the same mistake twice:
It is always about risk versus return. The problem here is that most people don’t get their engine started in investment due to fear of losing or scared of making mistake. One would definitely make mistake. However, start investing now, learn from mistake and mitigate mistake is the way forward.
- Asking for help is like the end of the world:
Parental teaching early age has ingrain in our mindset that if you ask, it shows you are stupid. We would say one should ask! However, get yourself prepared before asking people for help. The world very much works in barter system way. Bear this in mind, wealth creation is a team sport. You alone have scarcities in resources and the most important resource is time. Also, others have skill sets which you don’t acquire due to constraint in time and, you need to have exceptionally admirable skill set that will attracts the others to share with you.
- Do not invest in products that you are not familiar with:
Go back to the first statement, learn, familiarize and start investing.
- Try very hard to time the market:
No one can effectively time the market. We have seen this mistake repeating itself over and over again. People always thought that they can predict the movement in the market. Invest with a longer horizon and money management skill set whenever you invest, however, never time the market.
- Spend less than you make and invest the difference:
Investing is a slow and difficult path which requires discipline unless you were born with a golden spoon. The battle between fulfilling current lifestyle desire and wealth creation for the future creates a feeling of sacrifice.
Trying the above would not guaranteed the certainty of wealth building from your investment but rather increases the chance of wealth creation. Proper risk management should also go hand in hand.