Making money is more of a skill that can be learned than a gift. Fortunately, many successful people have come to the forefront over the past few decades and have provided pure tips to ordinary people about getting rich. In this part of the House of Capital, we go to Tony Robbins’ book “ Money Master The Game ” and listen to the words of this global coach. If you want to read an extract from the secrets of success of big investors, be sure to stay with us until the end of this story.
Wealth can also be achieved in bad economic times
After the catastrophic year of the world economy in 2008, the lives of many people lost their old form. Many who had amassed little wealth for themselves were suddenly displaced to the streets. Even many rich people lost a large part of their wealth forever. Years have passed since this incident.
Little by little, the people and the economy learned to cope with the new situation and resume their efforts to make money. Yet, what guarantee is there that this story will not happen again?
This hidden fear led the author to go to the best and richest American businessmen and ask them this question. In the end, he came to an interesting conclusion that he will share with us. The conclusion is: “Trying to predict the future of the economy is futile. “Instead, focus on doing something you can manage and control.”
This advice is very difficult in practice despite its simple appearance because most of us knock on every door when things go awry to get things back to normal. Something like the global economy is too big for us to control on our own. But our lives and the work we do in it are easily controllable.
The golden rule of money making: Correct time detection
Many believe that hard work always brings the right reward for human beings. Tell me, when a farmer goes to his farm in the dark of winter with a shovel and fork, can he expect wheat ears to grow from all that cold just because of his hard work? No, that is not the case, and no wise farmer would do that.
Hard work leads to reward when we do the right thing at the right time and in the right way. Otherwise, we have only harmed ourselves and destroyed our resources.
What helps us in this is the ability to recognize and understand patterns. Let’s go back to our farmer example. By following the seasons, the farmer determines the best time to plant the best seed in the land that he has already prepared with fertilizer. We must follow the same path to step into the land of money creation.
We must work and discover the patterns that make us rich. Consider the capital market.
When you can find the right way to identify financial patterns with the right training, you can take advantage of the best investment opportunities and make the most of it.
This is while a beginner or worse, someone who has no belief in financial learning and training, tries to be rewarded by trial and error or blindly following the financial moves of others. Such a thing is far from the mind.
Why is high income not a guarantee of getting rich?
Some people throw themselves into the fire and water to increase their monthly income by working in several different sectors. Due to the fact that they think increasing income is the only way to achieve financial liberation. Of course, this is true.
When you have different income chains, you can live with more leisure. The problem is that managing those increased incomes is very important and sometimes very difficult for those who are not looking for financial education.
You must have seen or heard of people who made a lot of money from their work, but who eventually died as a debtor or a poor person. What are the drawbacks of not allowing a lot of income to lead to wealth?
The main problem is forgetting a few things:
You should always and consistently save a portion of your income. Many have not yet begun to do so. One of their excuses is that they do not have enough money to save part of it.
I tell you, start with as much as you can. No matter how much; One dollar, $10, $30 or even $ 300. It is important that you set aside some money over a period of several years and do not steal it.
- Learn.Remember, whatever money you spend on your education will come back to you later with many benefits. Therefore, you should not let your mind become a stagnant pond. Learn and allow yourself to join the flow of money-making rivers by training.
- Invest. It is not enough to just save. You need to save your capital from inflation and turn it into your full-time employee to make money. In this case, too, the best thing to do is to learn and train.
Think again and again about investing in mutual funds
The author says: “I told you a while ago that one way to make money is to invest. Since the stock market is one of the best places to invest, many people go to different stocks with their savings and buy them; but in the end, instead of making a profit and increasing their savings, they lose money and may even lose all their valuable savings.” Why does such a thing happen?
Again, I can blame some of this on my ignorance and lack of information. Most people in the United States have a misconception about investing in Wall Street.
They think that all mutual companies and mutual funds are set up to serve them and fill their pockets. However, the first and last goal of all these companies and funds is to fill their own pockets.
You are the one who has to pay all the costs, bear the 100% risk and provide the required 100% capital. In fact, the only thing that managers and investment funds do is make huge profits and expenses.
Maybe in the end they will be kind to you and give you less than 40% of the profit generated by your capital. They will be the undisputed and legal owner of 60% of your profit!
That is why the number of mutual funds has exceeded the number of companies that have entered the stock market! Because the real profit is there.
Mutual or non-joint venture funds?
The author mentions: “when I asked Yale University’s investment director David Swanson about this, he told me: Invest in mutual funds and get your real profit.”
You should not think that the manager of an investment fund has occult knowledge and can predict the future of the capital market much better than you. Remember that the quantity of all human beings is fundamentally lame in prediction.
After all, sometimes their knowledge makes them proud and they make very risky investments with your capital! In the end, they think that if something goes wrong, they will reap the benefits of the wrongdoing and the damage they themselves caused!
Why not trust financial advisors 100%?
Usually, those who make good money for themselves are busier than those who spend a lot of time managing their capital every day.
So they go to financial companies and hire a financial advisor to get their finances in order. At the beginning of this path, almost everything was fine and people were increasingly hiring those consultants. Gradually, however, the turnaround and public confidence in these financial advisers waned.
In fact, it turned out that these consultants, instead of caring for the people’s capital, were acting in the interests of their company and its profitability.
Following this, the offers made to the capitalists not only did not lead them to make money, but even in a planned way in the interests of the company and to the detriment of the capitalists.
Wrong mindset about financial advisors
It was literally a disaster and a scam, and it still is. In fact, these financial advisors have a hierarchy that their clients know nothing about. The first priority for them is their company, then themselves and if there is anything left in the end for the investor.
What led people to hire financial advisors was a misunderstanding of their scope of work.
For people and those who have made a fortune for themselves, the position of financial advisor is a compassionate and knowledgeable person who helps them make the best decision about the fate of their own fortunes.
Financial advisers, in the true sense of the word, are nothing more than representatives of an investment firm. They offer different financial opportunities not for the people but for the good of their company.
This big misunderstanding made a lot of people a bridge to the growth of these investment companies and a reason to lose their capital.
Given these facts and bitter truths, Tony Robbins recommend two things:
- If you can take the time to sort out your tax affairs and train your finances without having to pay a ransom or unknowingly use your capital to fill the pockets of investment companies, take full responsibility for your zero to 100 profit and loss Take the lead in making money. In this way, at least you can rest assured that you are not lying to yourself!
- If you really do not have enough time to do these things, you can look for an independent financial advisor who will receive a percentage of the return on investment or a fixed salary in return for the advice he gives you. Of course, I have to warn you that it’s really hard to find such people. It goes without saying that some company consultants will position themselves as independent consultants and eventually, they will mold their company investment proposals for you. So be careful!
Do not look for a defined way to make money
Robbins says: “I have spent more than four decades researching the cause of great success. At first I thought that success has a universal and fixed formula that when one achieves it, one can unquestionably win; But when I started researching the lives of real celebrities and successful people, I was amazed that each of them has a unique way of succeeding.”
He continues: “Some were looking for long-term investments, some were interested in production, some liked operating in global markets, and so on.
This proved to me that there is no one-size-fits-all way to success, and that means that each of us alone can introduce our own success to the world. This is really amazing.
Of course, despite the differences that successful people have on the path to success, but in the lower layers of their performance, they adhered to four common principles that I will explain to you.”
Principle number one: When investing, look to save your capital instead of looking for profit
At first glance, this principle seems a bit unusual. Because usually the main purpose of investing is to increase capital, make a profit and make money. However, in fact, when you lose your capital as a result of a wrong investment decision, you have to redouble your efforts to get back to your starting point. Scince you have to make up for the profit that could have accrued to your capital during this time.
Principle number two: There is no guaranteed profit. Profit and loss live together!
Many small investors are looking to make a big profit by investing in high-risk stocks, or to make a profit without any risk. Large investors, meanwhile, are looking for investment opportunities where profits far outweigh losses.
Simply put, they do not erase the loss from their minds, but they want their profit to outweigh their loss. This will help you to continue to protect the essence of your capital.
One simple way to do this is to follow the 5: 1 rule. Under this rule, you are allowed to invest when you are sure that you will earn $ 5 for every dollar you put in the middle.
Principle Three: Look at your profit only after paying tax and ask yourself, “Have I still made a profit?”
Another dagger that investment companies throw at ignorant investors from behind is declaring their profits before their taxes and expenses are collected. In fact, they show you a big cake and call you the owner, but what you get in the end is just a very thin slice.
What saves you from this is breaking tax rules. You need to know what are the legal and ethical ways to reduce taxes and use them individually to your advantage.
Principle 4: Seek to diversify your investments
Never look to invest all your capital in one of the categories of real estate, precious metals, stocks or currencies. Instead, spread the word to all of these sections, or at least most of them.
This will help you in case of loss of one category, the profit of the other category will help you. This is sometimes overlooked in the case of stocks; For example, a shareholder invests all his capital in a particular share, thereby endangering his own destiny and that of his assets.
The four principles I mentioned to you were not strange things. Most of you may even criticize me for telling you such a simple story. It is true.
We may all know this, but the number of people who act on it is far less than you might think.
In fact, knowing is only valuable when it comes to action. Have you taken any real steps in applying these four principles?
Strive to have money and happiness together
Your quest to get rich is a big move to change your life and achieve financial freedom; But before anything else, and even long before you get a physical taste of getting rich, you have to become rich in the depths of your being.
When you feel full of regret, the thought of poverty, sadness, and limitation overwhelms your soul. In that case, even if you reach real wealth, you will not find the joy of using it.
True happiness, true wealth, and lasting happiness are first formed in you. So when you are on the path to making money, be sure to seek to nourish your soul as well.