Hear me out…
More than likely, the area of personal finance is attractive to you because you want to build a better life for yourself right? This better life might include driving cars that are more than the house you live in, living in not a house but an estate, or just having large amounts of spending money on hand. You may be asking yourself, “can’t my way of building wealth differ from this guy’s version?” The answer is, because the fundamental idea of wealth building starts with the correct mindset and idea that you have on wealth.
Can you picture that guy on Instagram going on insane trips to different countries? More than likely, the trip was financed and posed specifically for his brand. Him and many other people who live lavish life styles on Instagram and social media have nothing to back this fake. It is all for show. They put on this show to build their personal brand and appear as credible. This better positions them to be people who influence. Believe it or not, a large majority of people in this category have this motivation. They live superficially, and it is such a great show to watch! Putting the show on is another story, so let me get to my point. The way we think wealth looks is incorrect. This 21st century idea of wealth creation and what it looks like is unreal and unobtainable with no up side. There is nothing to gain monetarily from being materialistic, and if your main objective was to be an accumulator of wealth, it would show. See, the people with the real money either have a life style that no one could recreate, or they don’t even show it at all. They are the ones who exist on both sides of the spectrum; stupidly rich or not visibly rich. The ones who appear rich, have everything to show for it but no subsistence and fall in the middle of the spectrum. Understanding the distinction is also part of the fundamental idea of wealth building. When you clearly understand that, you can begin to shape an end goal that looks realistic and obtainable. The reality of the situation and wealth creation becomes clear and getting to where you want to go just got that easier.
So if owning expensive things is not where the pure idea of wealth creation lives, then where can you find it? What a great question to ask! Simply put, where wealth creation lives is inside of you. This is something not external, but internal. Wealth is truly not a measure of having external things. It is a mindset and way of life you. You cannot measure true wealth in my opinion, because true wealth is found in knowledge, and knowledge is never ending. Have you ever heard the saying “Knowledge is power”? Yeah? Well knowledge equals power and power equals money. If you take anything from this entry, remember that last sentence. It is not the financial instrument that will make you the most money, it is your creativity and ingenuity that will. Wealth creation stems from knowledge because knowledge is above everything else. The more you know, the more you can do, and the more you can do, the more money you can make. Knowledge is never-ending, and the person who strives for expanding what they know and who they know always ends up on top. How are you expanding the horizon for yourself? Do you read books on topics that are unknown to you? Do you talk to people you would have no reason to talk to? Do you have confidence? Asking questions like these, and being critical of yourself better positions you for wealth creation. Moving yourself away from comfort and doing things that would make you uncomfortable is beyond valuable.
The translation from knowledge directly into money is what I am going to primarily talk about. This translation is something that many people get wrong and ultimately leads to the superficial building of wealth. I am going to show you how anyone who has the desire to build wealth for themselves can have it! The primary medium in which this wealth is created will be in the stock market. I cannot think of any better place to earn solid returns with the kind of economy we have today. During the 1980’s where it was common to get a 5-8% return annually in a savings account, we wouldn’t be having the same conversation. This is the 21st century, and the way to build wealth consistently is in the stock market. Someone who is unsure or thinking they aren’t ready to take the plunge or “risk their money betting on stocks” may disagree with the things I have to say. Yet you will not find that same person taking any risk in life. (I assume) That you are young! You literally just found out what the stock market is, or maybe you just saved up enough to actually invest. If you’re in college and you managed to stow away some cash and you want to invest, more power to you! You’re bettering yourself by building a financial base that will take care of you. You’re doing more than the guy not taking risk. It may be small, but compared to your friends, you’re making yourself better off than them. And if you do lose some of that money or even all of it, there is still value in that experience. At the end of that loss, you more than likely learned what to do the next time, you figured out your emotions when it comes to investing, and more importantly, you learned the feeling of risk. There is so much more to learn but my point is this: taking risk and failing gives you more opportunity to learn and be better. Compared to your friends, you may have just paid $200 dollars to learn a life long lesson, they just paid $200 for a new pair of shoes. Which one holds its value longer? When you are prepared for risk and actually take chance, you are investing in yourself. When you don’t take risk and set your sights low, you will learn little to nothing and will not improve yourself. Being so young, you’re able to bounce back from those losses. Imagine taking those kinds of risk when you’re older with a mortgage, a wife and children? You’re less likely to take those risk because you have more to lose.
By following my entries, you will have more to gain and nothing to lose, because you are bettering yourself. Your desire to be better and to know more is already paying dividends. What we are doing here at Spark Results is compounding those dividends for you and creating a huge volume of information you can use. I applaud you for wanting this life for yourself and trust me, I will teach you something new. There is no where but up for you and if you do internalize these core ideas, success is almost a certainty. Remember that when you do strive for greatness and a better life, you are increasing the odds of that happening instead of striving to look like you live a great life. Doing nothing about anything in life will guarantee you zero change. Doing something in life will guarantee change. Turning your knowledge into wealth depends on creativity, motivation, confidence, and the goals you create for yourself. So no matter deep you get yourself into investing, always ask yourself these questions: “Am I inviting new ideas into my life?”, “Do I feel motivated right now?”, “Am I standing tall with confidence?”and, “Is what I’m doing in line with my goals?”. Never stop asking those questions and more importantly, never stop asking questions. Always strive for more.
With all that being said, let us take the dive into better understanding the things that will ultimately bring you wealth.
These are generalizations and meant to increase your understanding of the securities market. Any advice contained within this blog is general advice and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you. The information we are giving you is for educational purposes only.
“Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss. Trading is not for everyone. There is a possibility that you can lose your money. You should only act on our recommendations if you are confident that you fully understand what you are doing.