Formal education will make you a living; self-education will make you a fortune.
-Jim Rohn
The secret to becoming wealth in a short time is to gain higher returns on your investment.
In order to achieve higher returns on your money you need knowledge. There is a direct relationship between your knowledge about money and accumulating wealth.
According to a study done on the impact of financial knowledge on wealth creation, published by the National Bureau of Economic Research… researchers concluded that the more financially literate you were, the higher your chance of making better decisions and making money investing.
On the flip side, the study also concluded that individuals who had little knowledge about more are more likely to make costly mistakes investing and fail most of the time to make financial plans to become wealthy.
The findings from this study could possibly explain why many people end up poor after a lifetime of fully paid work.
The good news is you don’t have to be part of the statistic. All you need is to learn and practice how to invest…and you will soon join the rank of the 1% of the population that never worries about money.
All business skills are learned. You just need to train your mind to become a successful investor.
You need to be skillful at investing. Because the amount of money you can accumulate depends on 3 elements:
- Your return on investment (ROI) you gain. You are more likely to become wealthy easily, when you gain rates higher than 30% on your money
- The amount of money you have to invest. You are more likely to gain higher returns if you start investing with $100000 than if you start with $10000
- The length of time you invest money. The longer you invest your money, the more you can have compound interest work on your money.
The first of these 2 elements is entirely in your control. The key to have higher returns is to invest in assets that can give you high returns.
The only way you can find these higher yielding assets is to know where to look. If you are not educated your chances of making such investing decision is nil.
Sadly, most people take advise from their relatives when it comes to financial planning and investing.
You should take the time to learn the basics of investing …rather than asking your family members for investing advice.
When you take financial, advise from your relatives you are like someone who is playing poker at Las Vegas casinos.
Another common way most people make investing decisions…is to rely on financial advisers for help.
You want to avoid relying totally on financial advisers to make investment decisions.
I am sure you have heard of Bernie Madoff and Allen Sanford and what they did with investors’ money.
These were legitimate businesses regulated by the financial authorities…. Yet, many investors lost their life savings.
I am not against taking advise from financial advisers…. however I believe you must do your homework…buyers beware
Here is why….
The common advice you will get from financial advisers is to buy and hold stocks, so you can allow compound interest to grow your money.
The problem with investing in stocks and shares is that you cannot predict how the stock market will perform.
In addition, you have little control over the business decisions of the company as an ordinary shareholder.
You only hope is that the management of these companies is making the right decisions …so you can earn dividend on your money.
Most of the entrepreneurs that make money investing in the stock market have controlling shares in the companies they invest their money.
Warren Buffet makes money on the stock market by buying controlling stakes in undervalued companies.
He is then able to influence the business decisions of the company so he can gain high returns on his investments.
You don’t have to be a billionaire like Warren Buffet to start earning high returns on your money.
The most important thing you need is to invest your money in a different way.
Let me explain…
You see in order to become wealthy investing …you must understand that investing is not limited to buying stocks and shares.
You must also understand that you can invest in other assets.
You must know that each asset you invest in have historical average rates of return
In order to gain wealth quickly you must diversify your investment and invest
Real estate, stocks, invest in a business, and intellectual property
The only way to know all I have mentioned is to educate yourself and become skillful at using what you know…to gain higher returns on your money.