Regardless of your motivations, everyone has a need for money. Whether it’s so that you can retire early, travel the world, spend more time with your family, or just live life to the fullest, there’s a price that must be paid.
Yet too many people jump into the realm of personal finance and investing with the wrong mindsets. They have the wrong expectations, are too impatient, or major in minors instead of focusing on the things that move the needle.
Below, we’ve compiled some of the most useful mindsets that we’ve observed from millionaire investors. These are absolutely critical for building wealth sustainably.
1. Your #1 lifelong investment will be in yourself and your own education. Cultivate a love for learning, a habit for reading, and a keen curiosity toward the world.
2. There’s no such thing as a free lunch! If it sounds too good to be true, then it probably is. No one can guarantee returns, and if someone does… then turn and run the other way. Any seasoned investor will tell you that reward and risk come hand-in-hand.
3. No one has a magical “script” that can make you a millionaire. Finding lucrative opportunities and making smart investments takes serious work and research. Embrace this learning curve as the “admissions ticket” for building real wealth.
4. Don’t just be a “stock picker” or a “crypto trader.” Be an INVESTOR. That means someone who’s thought about his or her overall portfolio as a WHOLE. Only then can your investments make money through all the seasons…
5. Never put all your eggs in one basket. Each asset class has risk-reward profiles, fundamentals, and price drivers. For example, real estate and crypto thrive under very different market conditions. The key is to treat each asset class as just one tool in your toolbox.
6. “Free” is never truly free. Be wary of social media influencers or newsletters that give “free picks.” You don’t know who’s really paying them to pump those stocks/mutual funds/coins/etc…
7. Thus… do your own due diligence! This is why it’s so important to invest in your own education as an investor… you will always be your most reliable source of information AND fact checker.
8. Don’t day trade. It takes too much time, effort, and STRESS to stay profitable. Instead, you’ll sleep better and make much more profit by focusing on investments that have strong fundamentals for the long term.
9. Education > “Hot Picks”: Invest in yourself first. Don’t worry about missing out… new opportunities will come. Instead, focus on building real expertise that will pay dividends for years to come.
10. Seek sustainable information advantages… not one-hit wonders. Investing is an information game, and those who have better info will make better decisions… plain and simple.
11. Look for ASYMMETRIC bets. These are investments with capped downsides and massive potential upside. That means you can invest a very small amount (i.e. less risk exposure) to capture bigger gains. You can often find asymmetric bets in emerging markets, breakthrough technologies, and niche markets that have not yet gained mainstream attention.
These are some of our favorite millionaire investor mindsets. These are the starting point for massive success in personal finance and investing, so don’t overlook the “mental game.”
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