Become a millionaire with the right attitude, efforts and avoid mistakes
Success stories about millionaires make us feel inadequate when compared to their achievements. Their exalted status seems unattainable for normal people. Our impression is all about people inheriting wealth, or having high-income jobs, or winning the lottery. But reality is actually very far from that. With no secret formula to amass wealth, becoming a millionaire is easier than perceived.
People wish they were lucky to be rich, but fail to realize that they too could be millionaires as it requires neither family money, nor education, or luck. Serious efforts, the right attitude, and staying away from pitfalls, is all that is required. Are you ready to make efforts or have the right attitude? You need help to avoid making mistakes. We examine a few financial myths that might keep you from achieving your desires.
Myth #1 – Investing is feasible with lots of money
A common mistake most beginner investors make is about the amount of money required. While you shouldn’t exhaust everyday living funds for investment purposes, once basic needs are met and funds set aside for emergencies, you could investing with small amounts. The stock market has plenty of low-cost shares to build your portfolio. An early start into investing in life, with minimum capital, is advised. This not only minimizes your risk window, but enables your investment to grow over time. Avoid splashing hard-earned funds on the first low-value stocks you find. Always do basic research and learn from initial mistakes. You need not have huge capital to start on your investment journey. Remember that it is a long haul and can be done with minimal amounts too
Myth #2 – Stick to one kind of asset, and stocks are the best
Well such an advice is the opposite of what is to be done while investing! While buying stocks is easily the most natural step in your investment journey, limiting investment only to stocks could restrict your chances of becoming a millionaire. All experts advise that a well-diversified portfolio is easily the best strategy to build up wealth. A diverse portfolio includes not only different kinds of stocks but also stocks of several kinds of sectoral assets like real estate, trust certificates, bonds, etc. Distribution of your investments across different types of assets not only minimizes risk significantly but also assists in higher returns in the long run.
Myth #3 – Building a strong portfolio takes several years
As pointed out earlier, never rely on hasty decisions not backed up by some study. Always conduct a thorough research before investing your money, but often people lack patience or time to do that. To invest, a deep dive into investment fundamentals and analyses is immaterial. Make safe bets and start with S&P 500 Index Funds and ETFs (Exchange Traded Funds) which require minimal research and have virtually no risk. Do compare various funds available to determine what works best for you as regards fees and returns.
Our hope is to bust some unfounded myths about investing, and you should be able to step into the field with new zeal. So what helps you become a millionaire: the desire to succeed, the requisite hard work, self-confidence, dedication, and plain street-smartness.