Everyone wants to become rich. And we want it in a quick and simple way. But is there anyone who you know has become rich effortlessly?
Becoming rich or financially free is a slow process. If you want to make a significant amount of money, it is crucial to invest your money (be it in the stock market, real estate, or anything) than saving it in a bank account.
Why is it that some people see success in any sphere, and others cannot manage even a glimmer despite obvious talent? Research shows that it’s the mindset that differentiates people.
Hence one needs to develop the right frame of mind to achieve financial goals. Moreover, it is the growth mindset that helps people achieve success, not a fixed mindset.
If you are one of those who has never thought of investing and struggling to build an investor mindset, this post can be useful to you.
In this article, you are going to read how a beginner can develop a successful investor mindset. Let us get started.
1. Read success stories
Reading is a powerful habit that can mean the difference between success and mediocrity. Not only does reading bring enlightenment through exposure to the opinions, learnings, and stories of others; it’s also exercising for the mind.
What you think about consistently has a direct impact on your behavior and not the other way around. So, it’s important to get this fundamental ingredient right.
Hence, by reading stories of successful investors, we are filled with inspiration, the energy which is needed to drive us ahead and make us self-reliant.
Watch this video below to kick start your invesment journey.
2. Learn, learn and learn
Now that you have got the motivation, it is time to learn about investing. What good is developing an investor mindset when you know nothing about investing?
When you are starting with investing, it’s important to invest your valuable time enhancing your knowledge in the field that you are investing in.
Knowledge is power and as it increases, wonder deepens. It gives you confidence in what you are investing in and to think like an investor. However, the problem is that most people never learn about investing as neither it is taught in schools nor colleges.
Even the best degrees in finance or MBA do not honestly explain how to invest in stocks and make money from it smartly. However, fortunately, there are tonnes of sources online where you can learn about investing like youtube, blogs, workshops, online courses, mobile apps, etc.
3. Think like an investor
This is a crucial step in developing an investor mindset. To be an investor means you are thinking about the future and the direction of the world.
An investor should always aim to make money work for you. For them, money makes money.
As an investor, you should always look to save as much as you can, so you can grow a pool of assets, and then you can use the time the way we want.
Moreover, it is equally important to surround yourself with people interested in similar activities as you. This will encourage and help you keep motivated towards your goal.
Find a few people with whom you can hang out and discuss your investment queries. It helps you in thinking like an investor.
If you are interested in learning how top investors think like, you can check out this list of 5 must-read books for investors.
4. Have a plan and learn from your mistakes
Have you ever wondered why most people fail in investing even though they learn and develop a proper mindset? Because they lack a action plan.
A bad plan is always better than no plan. While you are going about investing, it’s important to lay out a plan for future growth.
You can keep a few good investing apps on your phone to remain updated with the investing world. Now, whenever you get time maybe during lunch, coffee break, or while traveling to and fro from your work, you can use this time to develop your investor mindset.
These apps help you in implementing your action plan. In case if it does not work you can always learn from your mistakes and make your plan better and efficient.
This way, you not only save your money but also learn a lot which is otherwise difficult. At last, this is the investor mindset that not to waste a single penny!
5. Be ambitious and patient
With patience, you can manage your money effectively with better control over emotions in every market situation to ultimately achieve your goals.
Jeff Bezos, founder of Amazon, once in a meeting with Warren Buffett, he asked America’s most prolific investor, “your (Warren Buffett’s) investment thesis is so simple. You’re the second richest guy in the world. Why doesn’t everyone just copy you?”
Warren Buffett responded Jeff by saying, “Because nobody wants to get rich slow.”
This answer by Warren Buffett has a lot of learning and lessons for those who want to make money, become prosperous, and live a good life. It simply says that patience is the key to long term wealth building.
Hence before starting your investment journey, wire your mind to be patient and long-term focussed.
Secondly, you must have enough desire to succeed and to forge a clear path toward wealth creation.
If all the great entrepreneurs out there are not ambitious, today we would not be enjoying what we are enjoying. Being ambitious is not wrong when it comes to investing but an essential tool to drive you to your financial success.
The investor mindset is about building a machine that will keep working for you, even when you are old and grey. It’s about building from small to large. The investor mindset is about empowerment, ownership.
Get the right investor mindset and start to take control of your lives for the better. All the best, and remember to keep striving for success.
Thanks for reading. Tell me if you are already an investor in the comment section below.