Building wealth with the right investment mentality
A look into the makings of a successful investor.
14:44 02 January 2014
Investing is not the final destination. It is a journey you should take and you should have a mindset to take it. It is important to have a winning mindset in order to be a successful investor.
There is this concept that financial writers dub as the investment mentality. This describes how people manage their finances with the intention that they continue to yield more and is not wasted in any way.
The following are some examples of what a good investment mentality should be like:
- Purchasing assets that not just grow in value but in turn generate more finances, thereby turning it out to be a long yielding investment. Invest in property, rent it out, and invest in shares and other tools that are an essential in trade.
- Learn something new and use what you have learnt in a constructive way. An evening course on learning to trade stocks will create very many investing opportunities down the road.
- Set up an establishment or invest time in something that will advance you in the job market.
- Critically examine your purchases and why they are needed. A critical insight into “Why Invest” is what the investment mentality is all about.
Your journey to financial freedom involves the following mindsets.
- Job mentality - You are investing your hard earned money on expenditures. Everything is subject to how much you work.
- Savings mentality - You reduce spending drastically and extra money you get is spent chopping down debts and saving for the future.
- Investment mentality - Investing is the main agenda. Every move is geared towards bringing you closer to wealth. Profits gained are re-invested over and over. Purchases are given due consideration when they are on the table. There is ruthless witling down of waste.
Saving is okay but investing is much better. With saving you add to what you have. With investing, you multiply your money and that is the secret to wealth.
Are you an investor or a saver or a spender? Where do you think you stand in your journey to financial freedom?