How much do you spend now on investing? 10% of your income? 20%? 70%? Don’t worry if it is not too much. The less you spend now, the more you can improve. You can invest even 1000% of your income in a given period of time.
iirraa at Flickr
We all have hidden assets
Our wealth is not a constant value and it is not limited to any fixed limits. Your ability to earn, save and obtain money are very flexible even if you work for a fixed salary.
Some of the hidden assets you have are actually pretty obvious:
- Spending Less/Saving
- Working more
- The value of your home and other property you own
Most of the people don’t even use 10% of them. Since you are reading this, you are likely to use more. But how much? Look just at the four items above. Are you using all of these hidden assets? There is probably a lot to improve yet at this point.
[ad#image-ad] And the opportunities do not end with these. You have assets that you may not think about at all. For example:
- Intellectual properties
- Your skills and knowledge
- Your friends and relatives
- Your business connections
- Your current investments
- Your future ideas
Leverage works not only in forex or stock trading
The concept of the leverage is one of the keys to financial prosperity. You will not go too far if you invest $1,000 per year in banks for 4% yearly ROI. To be exact, you will have $30,969 after 20 years (check yourself with the compounding calculator).
But if you can mutliple both values by 5, you will achieve more than 5×5 times that amount. To be exact again, for 20 years you will have $1,12 millions. Invetsing $5,000 per year and achieving 20% growth is certainly a realistic goal, especially if you leverage your assets.
The problem most people have with aggressive investing is messing logic with emotions. It is hard not to be emotional when you risk big amounts of money. And you will do this quite often if you want to achieve good results. You can’t expect not to be emotional. Your goal should be to follow a strategy regardless what feelings dictate you.
The pessimists see difficulties in each opportunity. The optimists see opportunity in each difficulty. In aggressive investing you will need a moderately optimistic look. Too much optimism will kill your finances, but without some you’ll just miss all the opportunities.
Think about investing in this way. You are investing some money that you don’t need right now. It’s like buying a lottery ticket but with much bigger chance for success. Each successful investment will help you win the jackpot. Each loss will just make you smarter.
Learn From Losses
You should accept there will be losses. Some investors say the key is to reduce losses.
The key is not to reduce losses.
It’s to learn from them. What did go wrong last time when you invest? Were you aware of the potential pitfals? Was it looking too good to be true? Did you give your money to someone else hoping he or she will do the best to manage them? Did you follow the crowd? Did you exit with a loss because of fear not to lose more?
You will quickly notice most of the time losses are due to some of the issues listed above. Aggressive investing is not very risky. It’s your mind that makes it look so.
I am going to talk soon about specific strategies for raising funds. If you don’t want to miss them, stay subscribed.