01 December 2011

Who Else Wants to Get Rich?

"No one wants to die. Even people who want to go to heaven don't want to die to get there'your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary."

Who Else Wants to Get Rich?
I consider these words of Steve Jobs from his famous 2005 speech at Stanford University as one of my guiding lights in whatever I pursue in life, including investing.

In not investing the way someone else does, and having the courage to follow my independent thinking and act on the same, I try to put in the hard work whenever and wherever it is required.

Anyways, let's leave out the heaven and death part from the above statements of Steve Jobs, and concentrate on wealth building.

Everyone wants to get rich someday. Even I do.

But the biggest question is - how many of us 'prepare' to become rich, if we weren't born with a silver spoon?

Working in a job and earning your living isn't going to make you rich. The inflation is rising faster than your annual salary hikes.

Taking on bank loans to buy a luxury car or a dream property won't make you rich. You'll end up working for the banks for the rest of your life.

Yes, winning a lottery or a game show can make you rich...but this is temporary given that we humans are not hardwired to sensibly manage 'instant' wealth.

So how do you get really rich, and how do you maintain your riches?

I believe, like everything we want to achieve in life, it all starts with the right kind mindset and ends with the right amount of efforts.

If you have the right mentality, you can become a very powerful individual capable of making millions for yourself.

Don't scoff at the notion! Most millionaires (who became millionaire the right, ethical way) weren't all that different from you or me when they started.

In fact, the only big difference is how they think differently. Once your mind is right, you will take action and ultimately you will also succeed in becoming rich (if you aren't already).
So what makes up the right mindset that the rich possess and most others don't?

See, it's no harm in learning from people who've been there, done that. So if you want to become rich (like I do), there is no harm in thinking and acting like the rich did...when they weren't rich.

Anyways, while there may be many ways you can form the right mindset to get rich, I'll concentrate only on the money and investing aspects, because that's what I know best.

So let's get started. Here are the five habits that the rich practice, and so must you...if you want to get rich.

 Know what you're so passionate about that you'd be happy doing it for 10 years, even if you never made any money from it. That's what you should be doing

Who Else Wants to Get Rich?
This also holds true for investing in stock markets.

Identify the right businesses - ones that you understand and that you believe will run profitably for years to come - and buy them even if you know that you won't be able to know their stock prices for the next 10 years after you buy them.

 Don't Get Bankrupt By 'Yes'

Who Else Wants to Get Rich?
Alternatively, learn to say 'no'. We don't know how to say 'no', simply because we find it hard to do.

We don't want to sound rude. We always want to sound agreeable.

We fear that saying 'no' would mean losing out on opportunities. We fear the conflict that comes from saying 'no'. We fear burning bridges by saying 'no'.

So if someone advises us a stock to buy, we find it hard to disagree and instead feel indebted to the advisor for his 'precious' advice.

What happens next is that we go ahead and buy the stock, without knowing what we are getting into.

Change that. Learn to say, "No, I won't!"

Learn to say 'no' to investment advice that doesn't meet your needs, and once you do that you'll find how easy it actually is.

 Successful People Do All the Things Unsuccessful People Don't Want to Do

Who Else Wants to Get Rich?
99 percent of investors don't succeed because 99 percent of investors don't work to succeed.

Apart from luck and the right kind of emotional behaviour, you also need a lot of practice to make money from stock markets. So whether it is spending time reading annual reports, or understanding businesses, you need to do it if you want to succeed as an investor.

Believe me, 99 percent of investors don't put in the hard work and still expect to get rich from investing. This doesn't work. It never has.

 Take Complete Responsibility of Your Actions

Who Else Wants to Get Rich?
There is no point in blaming someone else for your investment mistakes. Not your broker, or that business channel expert, or your colleague who advised you that 'dud' stock..the blame lies with you.

'You' willingly acted on that bad advice, so it's nice to own the responsibility. That's how you also own your life.

 Save to Buy Yourself Freedom

Who Else Wants to Get Rich?
Spending 100 or 200 here and there would not make much difference to your life in the present. But saving these small amounts, which you would've otherwise wasted on momentary pleasures, can make a huge difference in the long run.

Since money has the ability to work in your place, the more of it you save and employ, the faster and larger it will grow.

Most importantly, along with more money comes more freedom - the freedom to stay home with your kids, the freedom to retire and travel around the world, or the freedom to quit your job to work on your passion.

The author is Vishal Khandelwal, promoter of Safal Niveshak. Vishal, with his vast experience as a stock market analyst trains people to become sensible and successful investors. You can read his articles and reach him through http://www.safalniveshak.com/