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A study once concluded that if all the wealth in this world was taken away from everybody and then distributed equally to all people in the world, it would probably take less than 10 years until exactly the same people who had no or little money before would be poor again and exactly the same people who were rich before would have all their wealth back. In order to reach your financial freedom, you must master fundamental skills which makes a successful investor.
1. Find your true intention for financial success!
What’s Your Burning Desire?
Have you ever experienced how you drag yourself to work every morning yet you suddenly light up when you get to work on your personal project after work? Whether it is winning a championship in the community league or creating an investment portfolio, it comes down to your desire.
If you have a burning desire to achieve your intentions, you will find the way. If you can not, you will instead create your own path to achieve your intentions. However, if you are the type of person who is comfortable with your current lifestyle or you have a small desire, your mind will never create the energy to take the first step towards becoming a successful investor. You can grow your burning desire by imagining your desired reality every day in a vibrant, colorful and detailed way so that your subconscious believes that you are actually experiencing them in present.
2. Learn How To Control Your Emotions
Everyone is driven by their subconscious mind and this influences how people think or feel without themselves realizing why they think the way they think or why they feel the way they feel. This can be influenced by your experience, education, culture, surroundings, values, and beliefs.
Everyone Is Right In Their Mind
Everyone is unique and what you think is right because it is right according to your subconscious mind. No matter what others say your decision may be well different from others because your subconscious mind, values or belief says something different. However, this does not work in the world of money and investments. You have to be radically open to educating yourself so that you can put the wrong beliefs and subconscious into sleep.
For example, some people think having your money in the savings account is the best way to invest your money while keeping it safe. But do you know that Canada Deposit Insurance Corporation only covers eligible deposits to a maximum of $100,000? Now, is it still the best place to invest your money while keeping it safe? Your subconscious mind is just a collection of past memories which means it is easy to train it. Train your mind so that it doesn’t interfere with your investment decisions. Your ancient subconscious mind will always try to find reasons why it won’t work
Take Control Of Your Emotion
Every human being has emotions. Some may be more in touch with them and allow their emotions to influence their actions more than others. Of course, emotions are essential for personal relationships but when it comes to investments, you need to remove all emotions from your investment decisions.
When you invest long term, there will be times when the market goes down and you panic as you lose your investment. To be a successful investor, you have to master your emotions and not be afraid of losing. If you are constantly afraid of losing, you will never take risks with your investments. Without risks, you are never going to give yourself a chance to grow and become successful at investing. Remember, to make drastic changes financially, you will need to do things that will scare you.
Invest To Win, Not Just To Play
Have you ever watched any soccer team trying not to lose? They are not playing aggressive enough but instead trying to play safe so that they don’t lose any more points? Sometimes this strategy works but more often than not you see these teams lose. The same principle applies to investing. The moment you begin to invest as if you are trying not to lose, you become an emotional investor. This means you should immediately get rid of your fear of losing and remove emotion from your investment decisions.
Again, If you are always afraid of losing, you will never take risks with your investments. Without risks, you will never give yourself a chance to grow.
3. Get Educated and Support From The People Around You
If you want to accelerate your success, find someone who is already getting the results you want. They have the strategy and they can guide you in a way that will work so that you don't have to learn from trial and error. Education is not only about knowledge transfer. You can learn by observing how they respond to conflicts, how they network and build relationships and how to overcome challenges. Observe and see how you can incorporate these into your life.
Choose Your Friends Carefully
Do you have friends who bring negativity and distraction into your life? Have you ever realized that these friends have been slowly poisoning you mentally and physically? Are you used to having them around or are you worried about moving on? Let go of your fears and actively choose to surround yourself with people who have ambition and heart to support you.
If you hang out with billionaires long enough who dream up big ideas and convert them into reality, then you will be tempted to take action to elevate your standard by coming up with big audacious ideas and taking massive actions.
4. Create An Action Plan
It’s easy to tell yourself to start investing but how would you know if you are well on track 2 years down the road? Do you need to change your strategy? This is why you need clear financial goals with a timeline. It provides clarity and shows where adjustments may need to be made.
Once you have a plan in place, it doesn’t end there. A financial plan needs to be reviewed regularly and adjusted as required. During the review, you may realize that you will need more aggressive actions or significant life events such as marriage will require you to adjust your financial plan. A regularly reviewed financial plan is like a roadmap with a built-in GPS. If you veer off-course, it recalculates to get you to your destination.
5. Take Action
Now you need to take action. This may be the most difficult part of becoming a successful investor! Procrastination can very well be the reason that prevents you from starting your investment career. You may have been overwhelmed by the amount of focus and determination required for daily investment decisions. However, nothing will happen if you keep making excuses. See how much money you will lose by procrastinating 1 year on an investment which will yield a 10% return. In 10 years, your procrastination will cost you $23,794. As a successful investor, is this an acceptable opportunity cost?
Excuses are made by people who refuse to take action. It’s time to change this habit and start dedicating time each week for your investment journey. Consider your investment as a business. This means that you have to make a profit and do whatever it takes to make sure you are successful as an investor.