What it takes to be a Wealthy Investor

DisciplineRecently, I read somewhere that “when we invest we rarely give a thought to the importance of discipline in making our money our wealth and instead base our decisions on returns”. What people miss out is that it’s not returns that help you create wealth but it’s your discipline that does that. One must be thinking that what discipline has got to do with investments? But in reality it is THE MOST IMPORTANT thing when you invest.

The Perfect Method

Investing, like any other activity is also backed by a science. It also has rules and regulations and certain do’s and don’ts. Often when people invest for a goal, they like to discuss the plan of action to reach that goal. I believe this is imperative, every time when we choose to invest our hard earned money. But going ahead, no matter how well their plan is working they still have in the back of their mind that someone else is doing better and if only they switch to that method they will do better. This happens because their discipline has failed because they fail to stick to the plan. And hence they poison everything they do, just by changing the plan in the middle of investment.

Good Profits and Bad Profits

Sounds crazy!!! You must be wondering how profits can be good or bad. Making money on your money is always good, how can it be bad!!! I still remember while I was growing, my father used to tell me that having less money is way better than making more money through wrong means. As they say you can be lucky once or twice but not every time.

Similar is the case with investments. There is a need, that we change the way we think about profits. Yes just like a good or bad ways of making money, there are good profits and bad profits as well. For instance if you follow the laid down plan of action and make profits, there is a need to congratulate yourself as you made good profits. On the contrary if you fail to follow the plan and then also make profits, remember it’s even worse than a loss as you were only lucky and it may not be the case every time. Hence make sure you do not get happy about the money that was made solely because you were lucky.

Discipline is not about going on a crash diet wherein you just stop living your life but it’s just about ensuring that you faultlessly execute the laid down plan of action. In the end, lay down a plan, just stick with it through thicks and thins as this would only ensure that you cross the bridge when it comes.

Author:

SLA Financial Solutions is a Leading Advisory firm based out of Jaipur. We are amongst the top 5 Financial Advisory firm with a team of 20 + people. We have been awarded twice by CNBC as best Financial Advisor across North India.