Investing to win is simple, if you know what you are doing. Unfortunately not many people actually know what they are doing, and without knowing it they invest to lose. If you want to become rich, and if you want to be financially free and not have to work then you need to know how to invest to win. In the article I want to shed some light on how the rich invest, so that you can learn how to invest better.
The mistake most people make when it comes to investing is that they invest to make money. Now you might think I’m crazy for saying that investing to make money is bad, but hear me out. Most people invest to make a lump sum at the end, when they sell their investment. They buy investments that cost them money each month to have, hoping they will go up in value over time. This ties them to their work and they have to work harder and harder just to make ends meet.
When they finally do sell their asset, and if they make money, they then take HULT PRIVATE CAPITAL their money to buy a bigger investment that costs more money each month to own hoping they will make more money when they sell it. They are forced to work harder and harder just to make ends meet and they can never seem to get ahead. This to me sounds like investing to lose, not to win.
When you are investing to win you want to get both time AND money. The people who invest to make money at the end are not really investors at all, they are traders. Investors are people who buy assets that generate them passive income on a regular basis. If you want to invest to win then you need to focus on passive income, not just capital gains. If you want to get rich then you should buy investments that generate you passive income every month. That way with every investment you buy your income goes up, and the hours you have to work goes down.
One of the problems most of the so called ‘investors’ have today is that they are investing to not lose, not investing to win. There is a big difference between the two. People who are investing not to lose are fearful, and their main priority is security. They look for things with low returns that are very secure (like a term deposit account at the bank). The problem with this is that inflation goes up more each year than the amount they earn on their investment, which means they are effectively losing money each year.
People who invest to win invest with the intention of learning. Every deal they do they want to learn something new from it. Every property they buy, every stock they purchase, every business they build they want to learn more about investing. Because they are so focused on learning every time they do a deal they become a better investor. That means that they can make more money, quicker and with less money than someone who invests not to lose. If you want to become rich then you need to learn something new from every deal you do.
I have a friend who worked hard for a year and saved a fair amount of money. He then put about $20,000 in the stock market. He bought bank shares, but he doesn’t know why he bought them, he doesn’t know why they might go up or down, he just hopes they go up. If they go up then great, he made some money, but if he loses money then he hasn’t learnt anything. All he knows how to do is to work hard to get money, he is not a smart investor. People who invest to win also invest to learn.
Your next step towards becoming rich is to increase your financial IQ through education. By educating yourself in the area of finances you will be able to get a greater return on investment and you will be able to earn more with less work and less risk. Does that sound good to you?