Becoming rich is a matter of mindset. Some people can get by on a fraction of what others consider to be a lifestyle. In any event, you can always benefit from hearing what the smartest men and women have to say when it comes to increasing your wealth and making ‘your money work for you’. Today, we are about to find the kitchen secrets that these financial chefs use to spice up their cuisine of life. These tips are universal and they will apply to any individual.
- Francis Greco: Invest What You Can Afford to Lose
The first and golden rule of investment is to never commit more than you can afford to lose. As Francis Greco says to rookies when advising them how simulated and real money trading varies – it’s the money, it’s real. By being clingy to your finances, you are no longer seeing the big picture, but trying to avoid short-term loss, and this strategy usually leads to losses.
Whether you are betting on the crypto market or real estate when you are investing, you should be prepared to take a risk, but never with money, you cannot afford to lose. Many people like to gamble online with the hopes of hitting a jackpot. If you want to have fun, that’s fine, but you should only gamble with money that you’ve set aside for entertainment, not something you cannot afford to lose. This is all part of gambling responsibly which is explained very well here https://slotsandtables.com/responsible-gambling-guide/ which also applies to investments.
- Robert Kiyosaki: Be Disciplined and Don’t Accumulate Debt
You might think that wealthy folks are profligates who are looking to splurge on anything luxurious and shiny out there. That is simply not true – the splurging comes only after and if an individual gets wealthy enough. So says the famous financial guru Robert Kiyosaki, author of Rich Dad, Poor Dad. Possession of items that consume a significant part of your income is wrong and it leads to debt. You must try and live within your means – making personal compromises and staying on track for the bigger picture. You shouldn’t owe anyone anything and this is the best way to have the funds to invest.
- Russell Peters: Pick a Smart Investment
Real estate may seem like a negligible investment at first, but it most certainly isn’t, as seen by the experience of comedian Russell Peters. Despite the small return, you can continue to accumulate wealth like clockwork off your real-estate portfolio, especially if you can buy cheap and then rent or re-sell for a higher value. Do keep in mind local taxation laws which will usually not allow you to flip a property right away, but would come with a cool-down period.
- Catherine Mooty: Pick the Right Habits
Lifestyle guru Catherine Mooty also has a few choice words of advice about money habits. Saving can be hard and for many people who are struggling and live from one paycheck to the next, this is especially true. However, there are habits that will allow you to have the right attitude toward money.
You can start with something small, such as saving only 1% of your salary or wages, and that would in itself lead to healthy habits and the right attitude towards money. True, depending on your salary, saving a reliable amount this way would take a while, but it would also lead to accumulation of wealth as your mindset would shift to being thriftier as well.
- David Bach: Budget and Budget Well
It may be a bit uncomfortable at first, but keeping an eye on your day-to-day expenses will really help you paint a reliable picture of what you can and cannot afford. By budgeting and homing in on the money you spend daily, you will be able to plan future expenditures better and make sure that your finances are in check. Banal as it is, avoiding spending too much is the surest way to save up.
- Kevin O’Leary: Every Little Helps
According to Kevin O’Leary from Shark Tank, every dollar is the equivalent of a “soldier” in your army. In other words, every little help and matters in the grand scheme of things. You might think that indulging with an expensive car or changing your smartphone every year for the latest and overpriced model is something you need, but CEOs and top-level executives, who understand the value of money, only regard clothing, cars, and phones as tools – means to an end. They don’t need to be the latest model because arguably, a CEO wouldn’t want to be stuck waiting for the new Apple for hours.
- Paul Sullivan: It’s all about Mindset (and a little bit of luck)
Wealth isn’t just about the number of dollars you can stuff into your bank account. It’s also about your mindset and how you think about money. If you take a step back and ask, why do people act the way they do, how do we answer that? Paul Sullivan, author of the Thin Green Line and, the Wealth Matters Columnist for the New York Times has studied the psychology and habits of the wealthiest people around and in his experience, being wealthy and being rich is not the same thing. Rich is just a number, but wealth is a whole lifestyle and mindset. It’s what you choose to do with your time and money. Even if you’re rich, you can’t afford to make bad choices, otherwise, it will all crumble in a house of cards. Wealthy is about a sense of being secure, it’s not the money in your paycheck or how much your house is worth, it’s that level of comfort knowing that you can make choices and investments to keep and grow your wealth. You have to make sure that your realities and your objectives align. When it comes to people who have been successful, it’s important to understand how the very wealthy achieved what they’ve achieved. In short, wealthy people have a high level of focus on what they want to achieve, but they’re also willing to admit there’s always an element of luck because you can never control the outcome completely.
This sums up some of the advice our chosen celebrities give to less experienced people who want to start improving their wealth. Remember, you will need to remind yourself that you should only invest what you can realistically lose without blinking.