This week I want to share some money tips from the gurus that you can apply now that you are in the game of investing. You are in the game, right? 🙂
None of these tips are new concepts, however, they will be responsible for your ultimate success.
I’ve learned these tips and skills from others, including people like Tony Robbins and Robert Kiyosaki. These guys have incredible businesses in personal development and wealth.
At The Investor’s Way, we want to bring these skills to you, so you can learn from them as well. At the same time, we are available to you when you want to implement them.
So here are a few money tips from the gurus to add to your resources. If you haven’t read my previous post on money tips, you can read it here.
Money Tips from the Gurus – Become an Investor
This is such a simple concept and is derived from the mantra that I mention here regularly, ACTION.
If you want to achieve results you need to be active, and becoming an investor means you have taken the first step of action.
No matter how much you have, whether it is a large or small amount, there are ways to get started.
In recent years there have been new products developed to help people with small amounts of money to invest, exactly for this reason. To help you become an investor. These tools recognise that the key is getting started, and one of the restrictions in the past was the belief that you needed a large sum of money to participate, or to have success.
One of the most misunderstood and overlooked concepts in wealth creation is compounding…
You probably believe that starting small means you can never achieve financial freedom.
Well, nothing could be further from the truth.
In an interview with GoBankingRates a while ago, Tony Robbins talked about the UPS driver who earned $14,000 per annum and retired with a wealth of $71 million…
All because he saved 20% of his wage, the power of compounding returns created freedom from such humble beginnings.
Money Tips from the Gurus – Understand Risk
When I am having conversations with people one of the reasons they give me for not becoming an investor is that it is too risky.
Normally my first response, especially if I know the person, is to say ‘too risky compared to what’…
…and then I will follow it up with questions about where they want to be in life and how they expect to get there.
Quickly we can establish that risk is a fact of life.
We risk our lives every time we get in a car, yet we do it almost every day. Why? Because we need to get around to live our lives, right?
We make judgements of how much risk is involved in getting in that car and take measures to reduce our risk, such as wearing a seat belt or driving at certain speeds.
We undertake risk management.
So why do you find it so hard to do the same with money?
There are many ways to manage risk with money that goes beyond the scope of this post…
But a simple money tip that you can use is to identify a risk-reward ratio that works for you.
What this means is that for every dollar you risk, you have the potential to make five.
This means you can be wrong four out of five times as long as the fifth time you are right you will break even.
It’s not always possible to make these calculations in a simple manner like this example, but you get the idea.
The caution in this money tip is to be wary of investments that promote extreme risk-reward ratios, such as twenty to one or fifty to one…
If it sounds too good to be true, it probably is!
Money Tips from the Gurus – Correct and Continue
Over the years I have heard this phrase, correct and continue, described in many different forms, but this is my favourite…
It’s succinct and to the point.
Success is rarely achieved in a straight line.
It is not like you decide today that you are going to be an investor and start putting your money into various investments and in time they have grown smoothly into a fortune.
It doesn’t work that way for anybody, not even Warren Buffett.
There are times along the journey where you will incur losses, where things won’t go the way you wanted, that’s normal and it’s called ‘life’.
You are going to try strategies that don’t work, simple as that.
Unfortunately, there are too many people who run into mistakes or losses and use it as an excuse to stop.
The first hurdles become mountains that they aren’t prepared to climb. Don’t be one of those people…
The notion of correct and continue is to acknowledge what hasn’t worked, adjust your methods, and continue on.
Resilience is one of the most critical mindset traits of successful wealth creators.
Without resilience you will fail, no doubt about that at all.
So when you run into hurdles, acknowledge what hasn’t worked, adjust and try again. Correct and continue!
Your greatest achievements will come from having continued when others have stopped.
Learn from your mistakes, they are the best investment you will make.
Recently I started a new foreign exchange trading strategy. After years of refining my methods and applying techniques I had learned, I created a new strategy…
Initially, it didn’t work. There were losses.
But instead of throwing out the new strategy, I made adjustments and tried again. Results improved, the losses were less frequent and small wins started to flow.
So I made some more tweaks to the strategy, and now the strategy is flying, the results are great and I’m happy with the progress.
Correct and continue…
Notice what works for you and what doesn’t, adjust or try something different and continue.
BUT whatever you do, don’t give up on your dreams. You can only get to financial freedom if you keep applying yourself.
These three money tips from gurus are what I would say over the years have had the most profound impact on my wealth. It may sound too simple, but taking action, understanding the risk-reward equation and continuing after a correction are the foundations of a successful investment strategy.
It’s no surprise that almost every guru that I have ever studied has these three money tips in their strategy. It is what has made them successful.
Use them to enhance your outcomes and get on the path to financial freedom sooner than you thought possible.
Leave me a comment below to let me know what your thoughts are on these tips, would like to know if you are going to use them. 🙂
If you want to get started and don’t know what you should do first, I’ve got a free report for you. Just click this link to get your copy