Just imagine yourself driving your Audi A6 or a Mercedes S-Class. Ever thought of buying a luxury car? Owning a decent house property? A family vacation in Europe, taking your kids to Disneyland. If you haven’t thought of it yet, you are thinking small. Not seeing the big picture! People around you will get rich and achieve the luxuries, while you will be sitting home watching TV, looking at your wallet, and complaining about your whole life. What if I say Becoming Rich is simple!
BECOMING RICH IS SIMPLE
The only thing that comes between you becoming rich is YOU. Becoming rich as it depends on your mentality and on how you multiply your money. If you have a very good eye on shares, stocks, and the market trend it will be easy as a pie. But not everyone has such an expertise on these fields. Before moving onto this plan make sure you go through the Plan to be Secure first.
Since you must have a backup plan. “A bird sitting on a tree is never afraid of the branch breaking, because her trust is not on the branch but on its wings”. Successful investment is never about the place where you invest, it depends on whether you are a good investor or not. i.e. how you invest matters! This is the least underrated topic that no one try to understand. Defining it simply, if you want to be a successful investor you should have at least these three qualities.
#1 Education (Not a degree in financial management)
How do you educate yourself for becoming rich? Read books, seek knowledge from experienced personnel. Remember, Don Bradman and Sachin Tendulkar are the best cricketers of all time, but they always had a coach. You should have the knowledge of how the market works in certain situations. You should show some commitment in gaining such knowledge. With constant effort one should develop the mindset of a successful investor. Understanding the basic cash flow is evident in being a good investor.
Running a business includes employees who work for the employer or the business owner. Here the employee gets a fixed amount of money as salary whereas the owner gets the profit and that is comparatively huge. Moreover, owning such business also requires the clear knowledge related and relevant to the field. For that you need experience.
#2 Experience
All batsmen in cricket gets out, even Sachin. That does not mean that he is not good. Every time he gets into the pitch, he gains experience. So, to gain experience you need to start applying your knowledge. You may fail because of some mistakes; it gives you a new experience.
Small mistakes will definitely happen, that teaches your certain lessons. Eventually you will learn more, gain more experience. And that matters the most. To get hold of certain things that you have never achieved, you will have to gain knowledge over areas you never looked upon and give up certain other things. Improve your circles, as debating about Netflix and web series will not take you anywhere.
Make new connections with the people who have experience in this niche. Share your doubts and concerns with them. It improves your mastery too.
#3 Surplus cash flow
This is the trickiest part as it sounds. Surplus cash flow is never a monopoly of rich people. It simply means of rolling your money continuously thereby increasing the amount of money within. People who are willing to invest can put their money in various assets. It can be stocks, company shares, and bonds.
On the other hand, creating assets are indeed considered upright. Why buying other people’s asset when you have the freedom of creating your own? Make others invest in you and your assets. Yes! That is how world’s richest people become the world’s richest ones.
Specifically, take the example of William Henry Gates III, Yes! Bill Gates it is! He created Microsoft and millions of people bought it. Amazon’s Jeff Bezos (currently the richest person in the world) doesn’t own any shops but an online shopping platform. Bernard Arnault – CEO of Louis Vuitton, Mark Zuckerberg – CEO Facebook.
Accordingly, Warren Buffet created Berkshire Hathaway and become a billionaire at the age of 55, having a net worth of 71.8 billion USD, i.e. 71,800 million which is 7 with ten zeros following.
An interviewer asked, “Warren! Why couldn’t’ someone follow your path of money making and become rich?”. Warren Buffet replied, “ These days nobody wants to become a millionaire slowly”.
You cannot be millionaire in a day or two unless you are winning a Mega Million lottery.
It is a time taking process, as patience is virtue here. It is with greater knowledge comes greater decisions. Creating an asset has never been easy as it requires solid perseverance and determination. Always think big, start small, so that you face smaller setbacks. First step in understanding the market ups and downs is to read the newspaper. Listen to the market news. Hear what big shots have to say.
Following the market trend, is a herculean task as it includes various aspects and expertise in it. Moreover, generic people including you and me will find it very difficult to create such profitable establishments. If one is ready to spare some minutes from their daily hours, Share market is the best option for growing your capital according to the market trends. Easiest way to understand the current market situation is to understand how share market works. Now-a-days we are having smartphone apps to monitor the market and allocate your fund. How is stock market run? How to read the share market Indices? We will discuss this on my next article.
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Happy Investing!
Guest Author – Jibin Jose
An unparalleled guy, who goes from quarks to quasars! starts thinking ‘Do ants sleep at night?’ and end up in ‘Could Einstein be wrong?’. I don’t do great things. I do small things in a great way.
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