Business

8 mistakes to avoid to be rich

If you want to make a fortune, here are some of the things you should avoid doing. Take note!

The opinions expressed by collaborators are personal.

There is a very big difference between making big money and having a fortune.

8 mistakes to avoid to be rich
8 mistakes to avoid to be rich

Fortune is such an abundance that there is nothing that can destroy it. Earning a lot of money is one thing, but getting rich is quite another. Making a fortune … that's something very few people learn to do.

Have you ever heard the saying “money never sleeps?” Those who make a fortune take it literally, and believe that this money must work all day to continue growing. The rich respect and seek their money, because they know that nothing multiplies without attention. Sound crazy? Think of someone who doesn't pay attention to their money, and I'll point you to someone who lacks money. It's that simple.

Here are some common financial mistakes you should avoid to create wealth:

Seek comfort, not freedom

Comfort is a great enemy of abundance, and the most dangerous element of finance. The entire middle class is based on the search for comfort. The wealthy seek freedom and abundance such that money is no longer dependent on their efforts. “More” is the mantra, “abundance” the statement, “comfort” is not on the menu and “freedom” is the goal.

Diversify your investments

You can never get really rich if you diversify all your investments. Wall Street has done a great job of convincing people that it is in their interest to diversify, but the reality is different. In fact, top investors recommend “putting all your eggs in one basket” and watching her closely. If you really want to accumulate wealth , learn all you can about a space and fully enter it.

Relying on a single income

No matter how big it is, never depend on a single source of income. I met an executive who made $ 350,000 a year. Suddenly, the industry in which he worked had a crisis and closed, and his only income was cut short. Relying on a single source of income, however high, does not mean being rich.

To create a fortune, regardless of having a primary source of income, you must make investments that generate reliable streams of income. For example, you can invest in a property and put it up for rent, or you can invest in companies to obtain passive income streams. Thus you will strengthen your wealth.

Compare yourself with others

The vast majority of people who work do so to live daily. Comparing your finances with others will never accumulate wealth. Another person's finances, good or bad, will not finance your retirement or provide calm. Take care of your situation and leave that of other people for peace!

Invest in trends

Avoid investing in the latest technologies, as they are likely to be displaced by new developments. Warren Buffett invests in electric power, railroads, banks, insurance, soft drinks, food companies and sweets. My advice: don't ride the roller coaster. Take the longest and slowest ride, but that will guarantee your arrival.

Blindly trust

The biggest mistake in my financial life was naively trusting a group of people just because I liked them and because “I had a good feeling.” I refused to get proof that they were really what they said. Instead, I trusted my feelings and was deceived. When I realized something was wrong, I had already lost millions.

When dealing with people, ignore your feelings and always look for solid evidence. If they are people so close to you that you don't dare ask them for proof, then establish a policy of not doing business with them.

Save for saving

It is impossible to make a fortune just by saving money in the bank: at current interest rates, it would take you 40 years to grow your money by 10%. Even more important: the money that remains inactive always ends up financing an emergency. To guarantee my wealth, from the age of 25 I placed my surplus money in long-term investment accounts that I could not easily access. In this way, I had money available for investments when I had enough knowledge and courage to make them.

Pretend to be rich

At the other end of the spectrum is the “spender” that he intends to shield. His purpose is to impress others with the way he spends money: sports cars, expensive clothes, designer bags, shoes, VIP tables … the list is endless.

Rich people do not try to impress anyone: they seek financial freedom . Only when they reach a state of affluence and abundance do they begin to acquire expensive cars, yachts, vacation homes, and planes. It would seem that millionaires spend money on ridiculous and extravagant things, but the reality is that the money they spend is minuscule compared to the abundance they have generated.

So what do you decide? Being an average person or creating a fortune?

Similar Posts