The 3 most important Financial Stability Formulas that will change your life.
3 principles to follow that will make you more wealthier than you think.
Hi everyone , I hope that you will find this newsletter in good condition . I was very certain when it came to financial education because I think that it is the most underrated thing which school never taught us.
How to invest , how to do financial planning , how to make money work for you , how to handle assets and liabilities , how to make your business in autopilot , how to have full control over your money and time ?
These were the questions in my mind when I started out as a new Investor and I also think that most of you have also the same questions . This is also not our fault because our brain has had this same conditioning since childhood that the stock market is like gambling your money , mutual funds are risky and investing in cryptocurrency is like risking all your life savings . I know that there are some risks in investing but if you will not take these risks , then it is the most riskiest thing that you are doing.
I have a friend and a good acquaintance of mine , who recently disclosed to me about his investment journey . He stated that he has made $ 6,27,825 from investing $ 53,778 in a duration of 3 years . So, here I will tell you how he was able to make that huge amount so early , what are the lessons that he has learnt through his journey , and he is only 22 years old.
In today’s newsletter I’m going to talk about 3 financial strategies that , if followed, will definitely change your life for good.
So let’s go through these :
Start Investing Early.
Be patient.
Invest in yourself.
In this we will be talking about investing in stock markets , the lessons from big leaders and billionaires like Warren Buffet , Jim Simon and we will be going in depth about how you can build your wealth - not money , but wealth in your early 20s.
Start Investing early :
I know that most of you have already heard about the legendary and the most intelligent investor , Warren Buffet .
He has already read 1000+ books in his entire life and he is still reading over 100 books every single year. He has started investing as early as he was 10.So, we learnt that besides being a good investor , he is also a better reader and learner. Now talking about his Investing journey and lessons .
Till today , he has a total net worth of about $105.5 billion and from this total of $105.5 billion , he has earned $105 billion at his age 50 and , you will be surprised to read this , his next $102 billions after 65 years .That means he is earning at an average return of about 22% annually.
Now , there is Jim Simon , who is also an investor and he has a net worth of about $25.3 billion , earning at an annual return of about 66%.
Now, you will say in spite Jim is earning 3x more returns than Buffet but still his net worth is about 4x less than him. How ?
The answer is that Warren Buffet started investing money much earlier , whereas Jim Simon started investing when he was 50. Now if , suppose Jim Simon had also begun investing like Warren Buffet when he was 10 then , he would be the first Trillionaire of this century.
First Lesson learned : Start Early investing as possible . If you want to make good wealth , then you need to start investing in your early 20s or 30s with whatever you have right now. It’s not necessary to invest a very big amount , you can even start as low as 500 Rs. as a beginner.
Study the market , have a proper research for the same , get ready , manage some experts if you want and start investing. You can also learn day trading from youtube , for free , as well . So there is no excuse for you to start early.
Be Patient :
I have seen that today’s youngsters have no patience at all. All want to be wealthy , rich and prosperous in just a quick snap of a finger. But the main strategy that most successful investors follow is to be patient .
Warren buffet once said - “ Successful investing takes time , discipline and patience, no matter how great the effort is , some takes time and patience”
“Someone’s sitting in the shade today because he might have planted a tree long time ago”
Let’s talk about some analogies and relate these in a real time story.
(i) There were 3 friends - Warren Buffet , Charlie and Rick .
Warren buffet and Charlie partnered together in investing because both of them have patience and they were giving time in their money for growth. But Rick , on the other hand , was in a hurry . He didn't have any patience so he invested everything he had and incurred a huge loss as he was hoping for a quick profit .
As a result , Warren and Charlie became friends and started their own company , and Rick had to sell all his stocks to Warren . For Warren and Charlie money was proportional to their growth and time.As time was growing so was their money , because they have patience in them.
(ii) Jesse Livermore was regarded to be one of the best investors in the early 1925 . He made $100 million in his 30s from the stock market. In 1929 , he invested in the stock market , and he made $3 billion in just a single day. But he also didn’t have patience and since his greed increased, he went on for a huge bet and after 4 years he lost everything that he had.
Second Lesson learned : Be patient , don’t be in a hurry . Study the market very well and do proper research on the same before you start investing. Patience will always bear the sweetest fruit. Stock market is something that teaches people from being impatient to patient .
Invest in yourself :
It is good that you are growing your wealth by making assets and earning money while you’re asleep , but besides these , it is also important to invest in yourself too. By investing in yourself , I mean by building your proper and constructive mindset growth , maintaining good health , Learning , and reading .
Decide how much you are saving at the end of the month , and from that saved money invest some portion on the stock markets , some in cryptocurrency , some in mutual funds and the remaining money on yourself.
You can invest in yourself by buying a good number of books based on any niche that you like. Warren Buffet reads 100+ books every year . Bill Gates also invests most of his time in reading books . By reading , you will gain knowledge in various things which you can apply and learn.
You can also buy some courses online and learn something .
Third Lesson Learned : You also need to invest in yourself also . Read books , buy courses , learn some skills , maintain your mindset growth , health and fitness and family . This will never risk your money and you will always earn profits by investing on these .
I hope that you have learnt something useful today . Follow these financial strategies and I know that your life will change too.
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