This is part seven of my eight-part series on how you can beat the banks at their game and get yourself out of debt.
There is no quick fix when it comes to building your wealth. If something sounds too good to be true, it most likely is. Yet many people believe they can make “a quick buck” when it comes to investing.
Investment scammers encourage you to part with your money for dubious financial gain. They make promises of low-risk investments with high returns, usually involving shares or real estate. These kinds of offers are often made by cold callers or so-called “experts” at investment seminars, who claim they are giving you professional advice. In reality, these spruikers are pushing you to borrow large sums of money or buy investments on risky terms. It’s easy to be seduced.
Share trading is a big industry. It spans educators, share software and many other colourful products. But, as a financial strategist, I have not seen a single client who has gone down this path make any money. In fact, all of them lost their money. A couple of clients even had to sell their homes to pay down their losses. Share trading makes money for the promoters, nobody else.
So promises of quick capital growth will not build your wealth. There are two things that will build your wealth: Patience & Discipline
There is no glitter to patience and discipline. No get-rich-quick promises. But they are essential to building your wealth and assets. These Money Intelligent® values, combined with a sound financial strategy, are what will bear financial fruit.
Be disciplined enough to hold on to your investments for the long term. Don’t be tempted to cash in your assets for quick gain. If the value of your shares or property increases, use this increased equity to invest in more assets. As Warren Buffett says, “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.”
If your investments are making a loss, then seek proper financial advice.
Be patient. Build your wealth and investments slowly: day in, day out; year in, year out. Maintain a long-term view of your wealth and don’t fall victim to a con artist who will only get you into more debt. Download the first three chapters here: http://www.moneyintelligence.com.au/free-stuff/
Stay tuned next week for Part 8: Set Your Own Standards and Don’t Mind Thy Neighbour
Susan Wahhab —CPA, SMSF Specialist, Entrepreneur, Working Mum, Small Business Supporter— is Australia’s leading Financial Strategist and Money Mentor. Susan is the founder and managing director of Accounting and Financial Services firm Winner Partnership Pty Ltd www.winnerpartnership.com
Susan is the author of the transformational and practical book Money Intelligence®. Susan is passionate about helping people achieve financial liberation. At the age of six, she witnessed how her money-savvy mum (whom she calls the money manager) joined forces with her dad (whom she refers to as the money maker) to save the family business from bankruptcy and become financially free. Susan truly believes that people can become financially liberated by developing a healthy relationship with money. Learn more about being money intelligent www.moneyintelligence.com.au