We all have dreams of who and where we want to be at a specific time in the future. Even though some of those dreams might be different, one goal is common to all of us; and it’s the dream to be financially free. The life where we can do whatever we want with no worry about bills and expenses. Of all the ways to get freedom, investment has always been one of the most effective.
As effective as investing can be in changing people’s lives, there’s still a chance some will get little to no result from it. This is because there are some basic things they need to understand to get the kind of result that takes them to financial freedom. Today, we want to give you the number one piece of advice you need to hear to make it big as an investor. Let’s move on.
Prioritise Your Investing Capacity
That is it. The number one piece of advice you need to get the best result as an investor for you to be able to invest and get a good return. Obviously, everybody can start investing with a small amount of finance. But before you are able to see a good result, you need to begin a little and get bigger as much as you can.
When I came to London, I looked out for what I could do to earn money, and the last thing I did was to set up and begin my own business. After I was able to build the business to the point where it generated a nice income for me, I started to invest in properties. At a certain point, I had a meeting with my bank, and this is when I was exposed to the beauty of investing.
It was the experience that woke me up to become an investor. Of course, it’s not as smooth as a snowboard sliding on steep ice. I have to take classes, read books and learn as much as I can to understand the system and how it works. It takes me all this because I realise the fantastic opportunity of compounding interest. The awesome experience you get when you keep investing until you get the result in a compounded way that will blow you away and get you from where you are to riches.
If you want to be a successful investor, you need to start focusing on discovering your passion, looking out for side hustles; some other things you can do to earn additional income besides what you’re presently doing. This can be a business, another job, high-income skills.
If we’re going to recommend a business, then it’ll be the business I started in the last two years. It’s a network marketing business with Enagic company. The business is so unique that many other influential people recommend it, especially for startups or as a side hustle. Enagic network marketing helped me to raise more money to put into my investment portfolio.
However, don’t get this wrong. We are not saying you should not start small investing in the stock market. In fact, it’s better to start small than never start at all. But the point is that you should desist from staying small as it will not bring you the desired result. The result you see other people make that interests you is not getting played small. What will get you there is to start brainstorming ways you can raise your income to invest more and more.
The Power Of Your Income
You will understand this concept better when you compare two guys, one of which invested a thousand dollars into Tesla stock over the last two years and another one that was able to raise his income and invested a hundred thousand dollars. If the share went up by two thousand per cent in the later years, the guy who invested a thousand dollars would currently have twenty thousand dollars to his name, which is pretty cool and a massive return at that. But looking at the other that invested a thousand dollars and will presently have his portfolio worth two million dollars; you will realise the first result is a mere piece of cake.
That’s the power of investing capacity. Anyone who really wants to make it big from the stock investment has to raise the amount they’re put in the investment to get the significant result over time. The best way to do that is to increase your income capacity and cut down on your expenses. The former demands that you get a better job to improve your skill or start your own business. You have to make the sacrifice to get yourself to your investment dream point and become a happy investor.
This is so powerful that a person with lower income investing in stocks that brought great return over time will still lag behind the investors that have a large pool of income he directs to investment with lower returns. So the amount you can put in the game is what really makes the difference. It surely doesn’t come easy, just like every other good thing in life. Our health, fitness, calmness and mental balance all come with costs if you want them in the best way. Those who are courageous to pay the price are the ones that get what they want. It’s the same for investment; you have to keep trying your best to elevate your income so that you put more money into your portfolio to get the best return that earns you the freedom you want.
The Right Way To Raise Your Income
It’s not saving a few pounds monthly that will get you there; it’s your ability to work hard to raise how much you can make and forgo unnecessary and forgeable expenses to get your dream point faster and better. However, we must remind you that it’s in no way an excellent decision to leave your job when you don’t have another option waiting for you.
Some people make the mistake of quitting their current job first, then start looking for better jobs. This is absolutely the wrong thing to do, as it can set you up for frustration. What’s expected of you is to keep looking for a better job while still working in your present company. It’ll give you a double advantage; Employers are more likely to respect and hire you when they see that you’re not desperate to get a new job, and you will be able to make a choice based on your logic and not on the emotion of getting a job at all cost. You can also start your business when you have what it takes to start. It’s the leading way to remove the ceiling on the potential income you can make and will help to invest more money to get a great return.
There you have the top one tip for you as an investor. It’s the first piece of advice you should have at the back of your mind before anything else about investment. Income statement, balance sheet, evaluation, returns are all second-level. They cannot give you your desired result if you fail to get your income right as an investor. So, it’s excellent to say that you should fix your investing capacity before worrying about other things in the stock market investment.
Excellent to say, the market behaviour today is amazing. You can imagine seeing the growth of ten to twenty per cent. A few days ago, company stock went up by twenty-four per cent. That’s mind-blowing, right? That’s the same way it can go down. The market is currently in a volatile state. But it doesn’t mean that’s how the market will keep going.
Things like this have always happened at one time or the other before now in investment history. The most important thing is to invest in the right company. When you do this, you’ll always be at an advantage no matter the ups and downs of the market. Investment generally saves your money from getting lost to inflation and compounds it in the long run. It’s one of the best things you can do for yourself.
Want more investment advice? Check out our previous article on “8 Investing Rules Warren Buffett Wants You to Know“. Please subscribe to our channel, and share to bring you healthy tips like this. Thanks.
Recommended books for further reading:
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits
- Intelligent Investor: The Definitive Book on Value Investing – A Book of Practical Counsel
- Shares Made Simple: A beginner’s guide to the stock market
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Investing Demystified: How to create the best investment portfolio whatever your risk level
If you are looking to open an investment account, follow these links below:
- Passive income
- Silver & Gold coins
- Interactive Brokers
(‘68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)