It’s the time for steeling your resolve about ways to improve your life… and how to make yourself more wealthy is a good place to start…
Resolution 1: Get in touch with your feelings… about money
It may sound obvious, but you need to like money in order to get more money. If – deep inside – you feel having a lot of money means you’re selfish or greedy, or if you think money is a little dirty or somehow naughty, guess what? You’re probably never going to be rich, or stay rich. If on some level you don’t like money, it’s unlikely that you’ll have a lot of it.
The reason for this is because your emotions, consciously or unconsciously, will get in the way of your path to riches. That voice in your head saying money is bad is going to stand in your way – it could be the biggest barrier to wealth of all.
To find out how you really feel about money, ask yourself if you’ve ever had thoughts like:
- Money is the “root of all evil.”
- Making money takes too much time and effort.
- If I want money too badly, other people will think I’m shallow.
- Money doesn’t buy you happiness.
If you’ve ever felt this way, your attitude towards money may be getting in the way of making more money. Rich people don’t have mixed feelings about money. They wouldn’t be rich if they did.
So stop and think about your real attitude toward money. In the new year, you may need to decide to embrace money and believe that “money is good.” Getting more of it will be a lot easier.
Resolution 2: Confront your biases – and defeat them
Unfortunately, there are a lot of other ways that your brain can get in the way of being a successful investor.
The number of investment pitfalls, or cognitive biases, that can affect investment decisions is huge. Many thick books have been written on the subject. I’ve written extensively about them over the past year.
They range from feeling that “this time it’s different” (status quo bias), only subscribing to viewpoints that agree with yours (confirmation bias) or thinking you know more than you really know (the Dunning-Kruger Effect). All of these biases can lead to bad, and expensive, investment decisions.
The best defense against these pitfalls is to educate yourself. You can start with the report we prepared that discusses 10 of the most common investment pitfalls, and how to overcome them. You can download your copy here.
Resolution 3: Learn from others’ experience
Experience is a great teacher. But learning the hard way as an investor can end up costing you your life savings. (Or, as I wrote here, US$50 million of other peoples’ money.) The better option is to learn from investors who’ve made some mistakes already, but have overall been very successful.
Investing legend Jim Rogers is a friend of Truewealth Publishing. We’ve had the privilege of speaking with him a few times over the past year and have shared what he’s said with you.
Jim has told us why China will be the investment story of the 21st century, his thoughts on bonds, gold, oil and agricultural land. He also shared his viewpoint on owning real estate in Asia (more from us on that tomorrow) and why the world’s debt load is going to lead to serious problems.
We compiled some of his thoughts on markets from earlier this year in a special report you can download here.
Our latest conversation with Jim focused on market bubbles, how to live an exciting life and a unique take on diversification. You can find out how to access the entire video of this exclusive Truewealth Publishing interview by clicking here.
Listening to experienced investors who have learned the hard way (and regularly reading CityOut Monaco), will help you make better, more informed investment decisions. And possibly save you money. Another way is to become a subscriber to the Asia Alpha Advisory, which you can do by clicking here.