Like all great American traditions, investing creates wealth for the common man, not just the wealthy elite
Many of the young investors I speak to regularly think successful investing is about being a talented stock-picker.
They usually don’t have much experience with investing. Extreme cases are top of mind, whether it’s an aunt who had a successful fluke or stories of people losing money in a crash. This leaves an impression of the stock market as a casino where the fix is in from the get-go.
In my experience, I’ve seen investors:
- Follow the crowd that has jumped on the latest bandwagon
- Buy something that is going up in price
- Quit altogether
Successful investing isn’t only for the connected or the talented few.
Most millionaires are hard-working people who were not born wealthy.
The magic of compound interest makes it easy to start from nothing and create massive wealth during your working years. My parents, who immigrated to the U.S. in the early 80’s, starting from scratch in every way, were able to become millionaires within 30 years. I have the benefit of talking to everyday millionaires in my job, and when I tell them so they often laugh because they don’t see themselves that way. It’ll take courage to abandon the limiting beliefs about wealth that society teaches us, but you will gain confidence as your understanding grows — and you’ll see your net worth increase.
You start by taking responsibility for everything and believing you get to choose.
The best way to set yourself up for success is to be debt-free and have an emergency fund of 3 to 6 months of living expenses.
My clients have peace of mind when they’ve taken those steps before working with me. They can enjoy life with their families without the stress and anxiety that comes from money-related problems. It can feel like a huge weight taken off your chest and you can breathe again.
For new generations of investors, their expectations are influenced by a world that’s different from their grandparents.
The old days of a few gatekeepers benefitting at the expense of everyone else are gone for good.
Technology has democratized information and communication through the internet. It also creates new ways for people to collaborate and invest. With increasing options and flexibility for work, investors are going to increasingly fit work into their lifestyles, not the other way around. And the wealth they create in the markets will help fund that life.
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