As I mentioned in my previous post, being aware of your thoughts and words that limit your potential was lesson number 1 for me. Suddenly you become aware of how many negative things you said to yourself on a daily basis. And once you become aware of it, you can start to take steps to “deprogram” yourself of your negative thinking.
My journey with Robert’s book continued with my 2nd lesson. I was afraid of investing. I, like many others, believe that investing is risky. I always tell myself that I do not have spare cash to invest. I kept saying that it was better to have my savings rather than lose it through investments.
Of course it is important to have savings in order to tide you through rough patches in life. But the problem for most people is that they saved too much and put most or all of their money in risk-free instruments like fixed deposits and savings accounts. This thus do not allow you much leverage with your money.
But the real reason I was afraid of investing was because I believe that the only way to make money through investing is when the investment you bought appreciate in value. I said to myself that I was not good at predicting whether the stock or property appreciates in value, so investing is thus extremely risky for me.
However, Robert’s open up my mind to another perspective in investing. He said that an investment should start putting money in your pocket when you buy the investment and not when you sell the investment. He is basically saying that you should invest for cashflow rather than for capital appreciation. That was really a powerful distinction in investment philosophy.
When you invest for cashflow, you make your calculations on the return on investment from day one. You must make money from the start and not hope for the investment to increase in value. If the investment later does increase in value, it is a bonus, but if it reduces in value, you should have also factored that in when you made the investment at the start.
This change in investment mindset really opens up my thinking towards investing.
Till next post…
To Your Success
Wingcent Ning
Success-Biz Marketing
wingcent@gmail.com
http://mysignaturebusiness.blogspot.com
Singapore
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