People have three types of investment behavior:
- Not investing at all
- Invest in order not to lose
- Invest to earn
People who do not invest at all expect the state, the company they work for or their families to take care of them after they retire.
Those who invest in order not to lose usually choose investments that they think are safe. This group constitutes the majority of investors.
Those who invest in order to earn, turn to higher return investments. They are more willing to invest, they research and learn more about investment.
The strange thing is that all of these people, regardless of their investment attitude, have the potential to become rich.
The reason many people invest in order not to lose is because they find the investment risky and compare it to gambling. In addition, almost all of them think they need to take more risks to get higher returns. However, there is not such a direct relationship between high risk and high return.
Raising money is a really fun game. However, most people live in fear instead of enjoying this pastime. Therefore, they take their steps cautiously. They make “safe” investments, cling to social security, and live below their possible standards. Millions of them are also bogged down in debt and live paycheck to paycheck. Although these people wanted to have fun, they did not learn to invest in order to earn. Therefore, they are not considered to have actually built a good life.
The 90/10 Rule of Money
Most of us have heard of the 80/20 rule. Now I want to tell you about the 90/10 rule. This rule is an always reliable practical rule that I also apply in my own life.
Very simply, in the money game, 10% of the players get 90% of the money. We know that 10% of the world owns 90% of the current assets. 10% of real estate investors hold 90% of the investments. One-tenth of these are also the ones with the highest wealth. The 90/10 rule also applies to specialties. For example, in basketball, 10% of all professional players earn 90% of the money.
The 90/10 rule also helped me decide which area to head to. For example, the reason why I did not choose to be a basketball player was that I thought I would not be able to enter 1 in 10 in this field. If you had seen me singing, you could understand why I am not a singer.
Ask yourself in which field or industry you can enter the 10%. Do you think you are in the 10% of your current job? If not, is it because of your lack of skills in your field or something else? This short conversation with yourself in front of the mirror will give you a lot. Just make sure that no one is around you while doing this…
I recommend you to read my SEIZE THE POWER OF MONEY post.
If you interested you may also like:
- “LACKING OF MONEY” FEAR
- THE FIRST RULE OF GETTING RICH (It’s about investment also.)
- YOU NEED TO SAVE MONEY
- DON’T WORK TOO HARD -WORK FOR YOURSELF (And investments are also mentioned here.)
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