Beliefs could influence our action and behavior! Beliefs could either empower us to achieve greater success in life or limit our potential.
As we aim to achieve success in our equity and REIT investments, we need to discard the following limiting beliefs:
1. No time
We only have 24 hours a day, we need to make time to research on companies or REIT that we would like to invest into. Serious investing doesn't happen overnight. We need to invest our time effectively.
According to Jim Rohn (motivational speaker), he cited that we can skip a meal, but don't skip the half hour learning or 1 hour learning on daily basis that will propel us to greater height.
We could spend at least 1 hour a day to learn about companies, REIT, economics, history and etc. We could even motivate ourselves to do homework on investment by reflecting on our ultimate investment objective.
Print out your objective statement and stick on somewhere that is visible to you such a refrigerator, working desk or living hall. Whenever you see the goal statement, it might motivate you to launch into action and invoke your positive emotion!
2. No money
Our seed capital is very important. Make no mistake, we will face uphill task to grow wealth if we have cashflow deficit (expenses > income) on a consistent basis. Before we talk about bombastic investment terms or ideas. Do remember the importance of budget surplus:
Active Income= Savings= Purchase Assets=Capital Gains + Dividend Income.
Financial discipline is important so that we could generate surplus in cashflow. It might not be easy to reduce expenses, hence it will be great to work on increasing our income instead.
3. No finance background
We do not need advanced math or complicated theories to earn positive return from investment. Background in finance might help to certain extent provided we apply what we know, otherwise the knowledge is just an awareness. Only applied knowledge is powerful knowledge.
Invest in your personal library, buy selected books on equity investment such as those from Warren Buffet, Peter Lynch, Philip.Fisher, accounting for non-accountants, the little book on economics and many more. Start to learn on fundamentals of investment from business perspective and how to read financial statement as a start.
Read, learn, read, learn. Then apply the knowledge to earn.
Some people may associate learning with schools and learning stops once they leave school. Don't fall into this category and let's strive to be a lifelong learner.
Be like Soichiro Honda who is a learning machine!
Talk to someone who has invested successfully, he or she is likely to be happy to share knowledge and experience with you.
Some people may associate learning with schools and learning stops once they leave school. Don't fall into this category and let's strive to be a lifelong learner.
Be like Soichiro Honda who is a learning machine!
Talk to someone who has invested successfully, he or she is likely to be happy to share knowledge and experience with you.
4. Too late to invest
The best time to plant a tree could be 20 years ago. the second best time is NOW- Chinese Proverb
Do study the concept of compounding interest which is the 8th wonder of the world, harness the power of compounding interest to your advantage.
If an investor with 30 years of age invests RM100k today and earns 10% compounded return a year, guess how much will be the future value in 25 years time?
Your RM100k would have grown into RM1 million in 25 years time.
We could also start with regular saving and scale-up the saving amount as our income grow!
5. Afraid of losing money
Do study the concept of compounding interest which is the 8th wonder of the world, harness the power of compounding interest to your advantage.
If an investor with 30 years of age invests RM100k today and earns 10% compounded return a year, guess how much will be the future value in 25 years time?
Your RM100k would have grown into RM1 million in 25 years time.
We could also start with regular saving and scale-up the saving amount as our income grow!
5. Afraid of losing money
Acquire the right knowledge and refrain from being a speculator unless we possess specialized knowledge and the capital that we speculate is capital that we could afford to lose in the worst case.
Investing into good companies at reasonable price could minimize the risk of losing money. What we need to learn is what companies or industries to invest into and at what price?
We need to have a positive mindset that equity investment is one of the asset classes that could boost our wealth and help us in achieving our financial goals or financial freedom.
Some investors might want to see the result first before they believe that equity investment could generate wealth. But sometimes, we have to believe in the asset class first before we could see the result.
Investing into good companies at reasonable price could minimize the risk of losing money. What we need to learn is what companies or industries to invest into and at what price?
We need to have a positive mindset that equity investment is one of the asset classes that could boost our wealth and help us in achieving our financial goals or financial freedom.
Some investors might want to see the result first before they believe that equity investment could generate wealth. But sometimes, we have to believe in the asset class first before we could see the result.
So break through the limiting beliefs today and let's progress together as a successful investor!
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