We all want to be rich, right? We want to live the good life without a care in the world. Well, many of us could be on our way, however there are some things we do that prevent us from progressing any further.
No, we can’t blame the stock market, rising bond yields or those darn pesky Reddit whipper snappers. I’m talking about things only you do that is preventing you from getting rich.
That’s where I come in. My all-knowing senses can tell you what you’re doing wrong. Just don’t tell me what I’m doing wrong. Otherwise, I might cry.
Getting rich is no easy task, which is why there are things we need to do both mentally and physically to get there. We need the right mindset, the right investments and the knowledge to push through.
Playing It Safe
Risking our money in investments can be a scary thing. When you see your money dip so low, it makes you question every decision. What if you made the wrong choice in where you put your money? Has Tesla’s growth finally hit a dead-end? It’s that type of mentality that will cause you to panic sell and lose out on any potential gains.
But there’s also the problem of playing it too safe when investing. We all know you can’t get rich by keeping your money in a bank account. The interest rates are almost laughable. There is no way to grow your money through a bank.
So you think of the next best place for a stable environment to store your money. Bonds, right? You want a safe place to invest your money with better returns than a savings account. However, you’re still playing it too safe. There needs to be some risk involved in your portfolio.
Most of my money is in index funds, capturing the S&P 500, bonds, international funds and low-cap stocks. It covers a large range to mitigate risk as best I can, while delivering decent results. It’s not always a smooth trip to the top, but it’ll get me there.
Combine that with a select choice of stocks sprinkled into my portfolios. These include large blue-chip companies like Amazon, Apple and Tesla, while a smaller percentage are in risky stocks like start-ups, future innovation project, and other questionable companies. Businesses I believe in, but no guarantee they’ll succeed.
I’ve taken a risk in my stock investments, while maintaining a majority of my money in more stable and secure investments. And don’t forget about my cryptocurrency. Such a volatile asset can be a good bet to put some of your money.
Not Doing Research
This is so important especially when you’re looking to invest in individual stocks. Understanding the company, what they stand for and the work they are and will be doing is important. Looking at the competition in their field and their profitability will be key metrics in determining if they are a valid investment to make.
Look into the company and based on your own research, determine if they are a company you can standby. I narrowed my individual focus for future potential growth to be space oriented and found companies I think will really make a difference to that field with a good financial outlook.
Trying to Get Rich Quick
This one kills me on the inside. It’s become a real problem lately. But it’s really become prevalent since the GameStop short squeeze. People are trying to turn the stock market into one big get rich quick scheme, full of gambling and baseless projections.
You see these kids on TikTok dancing about the next stock that will 100x your investment or YouTubers throwing their opinions down your throat. There is no interest in getting rich slowly over time. Nobody cares about compound interest or building up wealth up until retirement. It’s all about those quick returns and bragging about it online.
I have never once told you to go buy a stock. I’ve told about key fields and examples of stocks I truly believe will do well in the future, but never once told you to buy these stocks right now to become a millionaire. I’m not a financial adviser and I’m willing to bet those people on TikTok aren’t either.
Do your own research and only allocate a certain percentage to those types of risks if you’re willing to make them.
