5 Ways People Are Killing Their Investment Dreams
I’m subscribed to a particular mailing list called DailyGood, which sends articles to my inbox daily about inspirational people contributing to their community.
Recently, one particular story captured my attention:
5 Ways to Kill Your Dreams (http://www.dailygood.org/story/1061/5-ways-to-kill-your-dreams-bel-pesce/)
Because I do invest myself, reading that article invariably got me to relate it to how people are killing their investment dreams.
Here’s my take on how people kill their own dreams … in the context of investing:
1) Believing in overnight successes
I own 8 businesses. These 8 businesses empower me to grow my wealth OVER TIME, not over-night.
But it’s not uncommon to see investors get attracted by too-good-to-be-true investments.
How will you know if an investment is indeed too good to be true? Simple – ask your introducer or presenter:
- How does the business earn money?
Previously, I attended such a briefing as one of my business partners introduced me. The 40 minutes briefing had only 5 minutes on its products and services presentation. The other whopping 35 minutes was on my return-on-investment (ROI).
Towards the end, I asked the presenter “How does the business earn money?”
He couldn’t give me a clear and honest answer, and instead attempted to get away with flowery, general statements.
Busted! I left their meeting immediately.
2) Relying on others to make your investment decisions
The truth is, no one is likely to care more about your finances than yourself.
The interests of financial advisors and “gurus” may not necessarily be aligned with your own investment goals. More often than not, these advisors are driven by the commissions they receive, and not how profitable they help you become.
Furthermore, it’s statistically proven that most fund managers don’t beat the market.
Add that to all kinds of fees and hidden costs that come out of your pocket, you’d be better off keeping your money under a pillow!
3) Diving in when they hear “guaranteed returns”
All forms of investments have risk.
While the downside may be limited to some extent, just because someone tells you your returns are guaranteed doesn’t mean you will make money.
Read the fine print. If you don’t understand it even after reading it several times, it might be better to give it a miss.
4) Not taking responsibility
Do you know of people who always have someone else to blame for everything that happens?
By laying blame, it’s easy to shirk responsibility for our own results. But this also means we give up control of what happens in our lives.
Ultimately, results don’t lie. Even if someone else made a decision for you, it was still you who allowed that decision to be made in the first place.
5) Having no regard for anything else
My investing dreams are important. But not at the expense of other aspects of my life that are important as well.
That’s why I stop to smell the roses. Play the Ukulele. And have my coffee from my favorite stall every morning.
So, did you silence your investing dreams unknowingly? If you did, I hope my short engagement gave you clarity. It is time to keep your investing dream alive.
“Please note that the material here is provided to you for general information and illustrative purposes only, or as descriptive case studies on how our value-investing principles may be applied. It is not intended to be and should not be construed as any form of general or specific financial advice. For the avoidance of doubt, we do not recommend or provide opinions on how or what you should or should not be investing in, and you should always do your own research and independent assessment before making any investment decisions, taking into account your own specific circumstances. If you require any financial advice on investments or any other financial matters, please consult the relevant professional financial advisers.”