Source: http://paradigmlife.net/blog/the-secret-that-all-millionaires-know-2/
Investing in the stock market can be scary. What if it drops? What if I lose money? How do I recover?
If the market drops 30%, it needs to increase by 50% to recover after a loss. In 2009 for example, some people rode the market through the ups and downs. These people did not sell, and eventually they were able to recover their losses and actually made a profit. With that said, it did take them five years to fully recover… but, they benefited by waiting.
What’s the Millionaires’ Secret?
Every millionaire will first emphasize how important it is to stay educated on your finances. Don’t just take risks, but rather take calculated risks that can pay off in the future. Financially successful people will do the research and analyze before making any risky decision. See, the key is that every financially successful person has a desire and curiosity to discover and learn more. Just because you’ve reached millionaire status does not mean you reached the finish line and there’s no room for improvement. A wealthy person stays a wealthy person by continuing to invest in oneself and grow.
Many people say millionaires are simply “lucky,” where some are; however, the majority invest time to gain more skills and knowledge to benefit the most financially. These people invest in oneself by staying up to date on the latest trends that can influence the suitability of an investment.
Alternative Investments
Something else that millionaires do, that many people don’t, is think outside the box when it comes to investments. There are many alternative investments that can replace the traditional investments that we all know about. If stocks or other investments aren’t doing well, you can have other investments to keep you ahead of the rest. Paradigm Life helps break down some alternative investments to consider:
Real Estate – Real estate investments build worth over time and property values generally increases. You may also be able to generate passive income by renting or leasing the property. The amount of investors that have succeeded through investing real estate is endless, so this is always a great alternative.
Collectibles – Collecting can be both enjoyable as a hobby and also profitable. To turn collecting from being just a hobby into a serious financial investment, you need to be knowledgeable about what you’re collecting. Finding the perfect buyers in the perfect market is key for this to be a successful financial payoff.
Commodities – Commodities include all types of valuable goods that are bought and sold in volume. “Most commodities like agricultural products, oil, and building materials are traded on the futures market. Precious metals such as gold or silver, are often purchased and held by investors in the form of bars or bullion coins.”
Interested in learning more about about possible alternative investments? We can help!