Financial Rules To Break for Wealth Creation are a must to know. Sometimes, in life, to get ahead you have to break some rules. And that is, according to some financial experts, exactly what the ‘average’ person has to do these days to actually begin building wealth rather than just getting by.
By breaking the rules we don’t mean doing anything illegal, so no need to go planning a bank robbery right now. What we do mean is break some of the old financial ‘rules’ that people have been living by for years, as they just don’t make sense any more. Here are the three big rules that 21st century financial experts say you should disregard from now on if you really want to begin creating – and maintaining – wealth.
Before You Consider Investing Spend a Lot of Time Learning About it So You Don’t Make Mistakes.
The problem with this particular pearl of wisdom is that it instills fear, and fear causes inaction. Many people however do take it to heart and avoid investing because they are afraid they don’t have the time or resources to ‘learn enough’ to not make mistakes.
But the fact is, every investor, even those who planned on going into the field back in university and got a degree in the financial field make mistakes. However, if you start with small amounts, any mistakes you do make won’t hurt you too badly and, as is the case with any mistake, you can learn a lot from them.
This is not to say that you should go into investing blindly, you do need to make sure you understand what you are getting into. What it does mean is that you do not have to spend months studying up before you ‘take the plunge’, because if you do you will probably never get started at all.
If You are a Small Investor Stick to Safe, Homegrown Investments
This is another ‘pearl of wisdom’ that makes no sense anymore, especially for South Africans. There are some great domestic investments to be had but a volatile market and a degree of political instability means that making domestic investments your only priority could turn out to be a mistake.
Offshore investing is something that people often think is reserved for the very wealthy but that too is no longer true. The South African government has made it far easier for the ‘average’ South African to invest abroad with a number of legislative changes over the past few years and this means that quite literally a whole new world of investment opportunities for everyone, including the man or woman in the street. If you are serious about using investments to build wealth, offshore investing is something you should not ignore.
Don’t Ask for Help, It Costs Too Much
This is a newer one, mainly perpetrated by those individuals you find floating around the Internet who claim that if you buy their book (and then pay to join their special web service) you can make a small fortune in the stock market without paying for any kind of financial advice (because that costs too much)
Again, this makes little sense. Let’s say you are planning to sell your home. You could, if you like, make your own ‘For Sale’ sign, stick it in front of your house, put a couple of ads in Junk Mail and on Craigslist and hope for the best.
But very few of us do that do we? Instead we hire an estate agent because we know that they can help us get the place sold. And so that is also why people seek financial advice when beginning to invest. The modest financial outlay buys them experience and sound advice in the same way and they still can reasonably expect to be financially better off for it.
So now that you know which ‘Financial Rules To Break for Wealth’ perhaps you are ready to start looking and learning about your options. Call us today and speak to one of our professional consultants to find your best way forward now.