Dear friend, do you want to know 4 secrets of the rich and famous? Be goal-oriented, learn all you could about finances, diversify and spend your money wisely.
You cannot achieve bigger things if you only have small dreams. There is nothing to lose in dreaming big. That’s what wealthy people do. It is a mindset. Wealthy people focus on opportunities and are goal-oriented. So here are 4 tips to help you change your mindset.
Goals inspire us, motivate us and give us purpose. Many of us have common goals, such as paying off debt, buying a house and retiring by a certain age. Maybe you have another goal of starting your own business or buying a second home.
Unfortunately, goals are easily overshadowed by the daily stresses of life and all too often forgotten and neglected. When goals are just fleeting thoughts in your mind, they lose their meaning and influence over your behavior. This leads to bad financial habits, and your dream of becoming rich stays just that — a dream.
To make it a reality, stay focused on your goals by committing the time to think about them, prioritize them and assign a target saving amount to each of them if possible. Then you should display your goals in places where you can be reminded on a regular basis, which will keep you accountable and help you stay on track.
Successful investors take the time to study key financial concepts, learn the dos and don’ts and stay abreast of current trends. They take advantage of opportunities to strengthen and expand their understanding and expose themselves to financial information on a daily basis. Take a cue from them. Become a devoted student of money, and you can master the science of getting rich.
Be careful not to overwhelm yourself, and only follow advice from credible sources, so you don’t fall victim to progress paralysis or unsuitable and potentially dangerous investments.
Diversify your portfolio
Successful investors also know not to put all of their money eggs in one basket—or two baskets, for that matter. They spread their wealth across a variety of investments, from stocks, mutual funds, bonds, to real estate, collectibles and startups. A diversified portfolio means that you can potentially take advantage of multiple sources of growth and protect yourself from financial ruin if one of your investments bombs.
An easy way to achieve diversification is to invest in an asset-allocation fund, such as a target-date fund or “life strategy” fund that is based on your risk tolerance. And if you don’t have the means to buy property outright, you can explore investing in real estate mutual funds. Just be careful not to concentrate your money too heavily in any one investment.
Spend money to make money
It’s true that there’s a price to pay for wealth. Impulse, naiveté, and emotions, particularly greed and fear, can seriously hinder your chances of being rich if you let them. The best way to protect yourself and get a step up on your financial goals is to first invest in a team of financial professionals. This means hiring a qualified and experienced financial adviser, accountant and in complex cases, an estate planner. Yes, working with pros will cost you, and you can still do some DIY investing, but their objectivity, expertise, personalized guidance and ongoing monitoring can be well worth it (and relieve you of the huge burden of figuring it all out on your own).
Make sure that you interview several candidates so you can find pros you trust, feel comfortable with and whose approach is a good fit for your situation. And even if you work with an adviser, make sure that you’re still involved and aware of where your money is going — and why.
Until next time, make this a week one in which you are living your life to the fullest.
With appreciation and gratitude
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Nigel St. Hill is a writer and a life and money management coach helping people who are ready to discover their path to money, abundance and prosperity, so that they could live the life of their dreams. He is the founder of http://www.moneyandabundance.com and author of the book, Money Management Caribbean Style and several ebooks including The Easy Cash Flow System, How to Keep Your Doors Open in a Recession, Creative But Practical Ways to Save money, 8 Simple Ways to Live a Healthy Abundant Lifestyle,12 Secrets to Having a Romantic Relationship, Ten Easy Ways to Empowerment, How to Attract Money and Abundance, Uncover Your True Potential The Complete Guide to Life Skills for Today’s Youth and 7 Steps To Becoming An Empowered Single Woman(NEW)