Many people believe that success is associated with wealth or fame, which is why bookstores, booksellers, monographs and articles scramble to offer advice on how to get rich quick.
In a report published by the American Entrepreneur magazine, which specializes in entrepreneurship, writer Brian Robb says that the authors of get-rich-quick schemes target a wide audience, as they flood store shelves with their tips and secrets, taking advantage of the increasing demand for them, which makes the public overlook the fact The money does not belong to the book purchaser or the seminar attendees, but rather the author benefits from it.
The writer makes it clear that a person cannot acquire wealth through reading or passive listening, but through work in which knowledge is used as latent and stored energy, and transformed into actions that will create wealth, whether through the development of a new industry or by investment road.
Although there are no secrets or shortcuts to getting rich, those at the top of the financial pyramid usually have certain characteristics.
Essential attributes for building wealth
The writer shows that the habits possessed by those who achieve uncommon success are usually learned and practiced (acquired), not inherited, as some argue.
Therefore, instilling these qualities is a matter that requires deliberation and continuity, especially since they are available to everyone and can be learned, despite the tendency of some to one of these traits and not others.
1. Focus
The writer begins with this trait, as he explains that daily life is replete with distractions at all levels, some of which are important and some of which are unimportant.
He points out that achieving wealth cannot be considered easy, as it can take years, or a lifetime, or it can be a stroke of good luck, explaining that most wealth is built slowly by continuous investment of a portion of the individual's profits wisely, where the focus must be on the destination. Avoid wasted time and energy, wrong directions and opportunities.
2. Self-discipline
The writer points out that the "yin to the yang" philosophy - an ancient Chinese philosophy - is related to self-discipline, which is the ability to control one's thoughts and actions, as many defined discipline as the ability to delay the gratification of desires, which is consistent with An investment that requires care to provide a portion of the income regularly, and to avoid the immediate pleasure of buying.
The writer says that those who cannot control their spending rarely create or keep wealth. Most successful people are not extraordinarily talented or geniuses with a high level of intelligence, but rather ordinary people who learn to connect the actions of today with the results of tomorrow, citing what the humorist Will Rogers says: Self-discipline enables you to avoid spending money you don't have, to buy things you don't need, to impress people you don't like.”
3. Experience
The writer believes that many confuse the knowledge that comes from reading, and the experience that comes from the ability to use knowledge to obtain specific results, explaining the extent to which successful investors need to know many disciplines such as accounting, finance and security analysis that can only be obtained through study.
However, expertise develops by consistent and objective application of acquired knowledge, or what researchers call "deliberate practice," noting that research shows that by working on and developing what you can't, you can become an expert if you want to, because experts are made , they are not born.
4. Risk management
The writer goes on to stress that successful investors must understand the types of risks inherent in the business and reduce their likelihood (frequency) and the loss associated with their occurrence (magnitude), giving an example of the investment philosophy of George Soros, one of the most successful investors of all, which focuses on potential investment losses. "It doesn't matter if you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong that matters," he says.
The writer advises investors in several ways to reduce potential losses when managing their investments, such as:
Know their tolerance for risk:
As people's tolerance for risk varies, a high-risk investment can be volatile with price changes, and arouse intense investor sentiment.
Thus, the general rule is that any investment that causes insomnia and lack of sleep is an investment that should be avoided.
Guaranteed potential return constantly exceeds potential loss:
you should always keep in mind the volatility of the coin, since investing in a coin to earn a fortune is not an investment but a gamble.
Follow Investment Risk Reduction Techniques: It
is recommended to avoid or reduce assumed risks through diversification or similar strategies.
The writer concludes by emphasizing that the path to wealth is often difficult, as many begin their journey and discover that the pursuit of wealth is very demanding, and that the trade-offs between the present and the future are very large, noting what writer Julia Cameron said in this regard: “What we want to do is what We really intend to do it, when we do what we have to do, the money comes in, the doors open for us, and we feel the benefit.”